FAYSAL Report

_____________________________________________A Report on Pubali bank Ltd
___________________Impact of Foreign Remittance on Foreign Exchange Business
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1.1 Introduction
Banks play an important role in the business sector and industrialization of a
country. Basically, bank collects deposit from the surplus units and lend it to the
deficit units against interest for a certain period. Under this sphere, the bank
offers different interest notes and other options to there customers to remit and
deposit there money. Most of the common between the banks, only the customer
service and other facilities vary. A Significant growth in the GDP with lower
inflation level was attained during the past few years despite a host of adverse
external sector developments like South-East Asian crisis and recent global
recession and various domestic adversities including devastating floods. In the
background of liberalization of the economic policies in Bangladesh, there are
many government banks, semi-government banks, private and foreign banks.
Pubali Bank Ltd is one of the largest and leading private commercial sector
banks in Bangladesh. The bank was incorporate at 1959 in the name of Eastern
Mercantile bank Ltd. under the 1994 Commercial Act in 1971. After the
liberation of Bangladesh the government of Bangladesh nationalized the bank
and the Bangladesh Bank Nationalize Order 1972 and charged the name Pubali
Bank. In 1983 the Pubali Bank was decentralized and focused as private named
Pubali Bank Ltd.
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1.2 Derivation of the report

The internship program is a connected part of the BBA program that all the
students have to submit you to University of Bangladesh. The students are sent
to various organizations where they are assigned to one or more projects. At the
end of the program, the internees are required to place the accomplishments and
findings of the project through the writing of the internship report covering the
relevant topics. During this program, supervisor guides each student – one from
the university and the other from the organization. This report is the outcome of
a 3 months September 01, 2009 to November 30, 2009 internship program in
Pubali Bank Limited, Foreign Exchange Branch Dhaka.
1.3 Intents of the study

This study is intended for providing me invaluable practical knowledge about
banking operation system in Bangladesh. The prime objective of the study is to
examine the performance of Pubali Bank Ltd.
However, the specific objectives are the followings:
• To accomplish the partial requisite of BBA Program and to achieve of good
judgment with theoretical base.
• To have a revelation on the banking environment of Bangladesh.
• To review the impact of Foreign Remittance on Foreign Exchange Business
and consumer banking services and operating system of Pubali Bank Ltd.
• To evaluate the factors affecting performance of the bank.
• To suggest the better ways of enhancing the performance of the bank.
• To know how the Bank fixes profit rate and distribute/allocate the profit.
• To make myself more confident and active in future to finger my job.
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1.4 Rationale of the report

Knowledge and learning become perfect when it is associated with theory and
practice. Theoretical knowledge gets its perfection with practical application. As
our educational system predominantly text based, inclusion practical orientation
program, as an academic component is as exception to the norm. As the parties,
educational institution and the organization substantially benefit from such a
program, it seems a “win-win situation”. It establishes contracts and networking
contracts. Contracts may help to get a job. That is, students can train and prepare
themselves for the job market. A poor country like Bangladesh has an
overwhelming number of unemployed educated graduates. As they have no
internship experience they have not been able to gain normal professional
experience of establish networking system, which is important in getting a job.
That’s why practical orientation is a positive development in professional area.
Recognizing the importance of practical experience, Department of Finance
Studies, stream- FIN has introduced a three months practical exposure as a part
of the curriculum of Bachelor of Science Business Administration program. In
such state of affairs the present aiming at analyzing the experience of practical
orientation related to an appraisal of Pubali Bank Limited, Foreign Exchange
Branch Dhaka.
1.5 Methodology
For teaming up the data & information collected through primary & secondary
sources I have used both qualitative & quantitative method. During my study I
followed some methodology to find out the fact & feature of the Bank which are
given as follows:
(A) Area of study: My project is the operational mechanism in Foreign
Exchange Business through Foreign Remittance of Pubali Bank Limited.
(B) Sources of data/information: I have collected my information/data from
the following sources, which helped me to make this report. The source has
divided by two parts.
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Such as,
1. Primary source &

2. Secondary source
I used both the above sources.
Primary sources: It includes interviews & conversation with officers &

executives of the Bank of different divisions/department and branches.
Secondary sources: It includes annual report, general report, investment
manual, general banking manual, selected books, journals & other publication
etc.
1.6 Scope and Limitations of the Report

(a) Scopes
• The report is based on the operational functions of Pubali Bank Ltd, Head
Office, International Division, and how they works to regenerate the Foreign
Currency and Foreign Revenue from other countries and help to establish
corporate level of industry and also the managerial techniques to solve the
sensitive operation of the banks performance. I had the privilege to learn on
Foreign Exchange Business and Foreign Remittance by serving here since
September 1, 2009.
• I have joined in the service of the Bank in September 1, 2009. I have got
huge training on General Banking and Foreign Exchange by the bank
management through Pubali Bank Training Institute and Bangladesh Institute
Bank Management. Therefore, I had a chance to prepare the report on the
basis of my professional training and experiences over four years.
(b) Limitations
• The total report like “Impact of Foreign Remittance on Foreign Exchange
Business of Pubali Bank Ltd.” is vast and not possible to make it over a
night. So it is the hard task to prove all the information on that necessary
segment which might make report more resourceful and out standing. I
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couldn’t prepare the report as the best of my wish because much information
could not gathered for the recourses of confidentially. During the banking
hour there were many customers who has to be served time offered per
customer was not adequate to ask about their satisfactory and dissatisfactory
level in connection with foreign remittance and foreign exchange business
which might have helped to focus in more detail.
• Another limitation of this report is Bank’s policy of not disclosing some data
and information for obvious reason, which could be very much useful.
• The Bank authority was very busy, so they could not give me enough time
for discussion about various problems.
• In case of performance analysis secondary data are used.
• This study completely depended on official records and annual reports.
• To prepare an analytical report need financial assistance. The financial
assistance provided by the department is insufficient. In perspective of lack
sufficient money, various types of analysis did not become possible.
• The bank is my employer and I had to perform my official duties at Foreign
Exchange Office during my internship program so that I had no enough time
to go here and there to collect more data and interview of the different
officials/executives of the Bank.
• I have joined in the service of the Bank in September 1, 2009. The report is
prepared on the basis of my professional experiences over four years.
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1.7 Structure of the study

The Report is divided into seven chapters. The report is organized in such a way,
which will enable the reader to grasp the subject matter of the study from top to
bottom. It will allow an assessment of subject.
 First chapter provides the background of the study. It describes the
objective, methodology and the scope & limitations of the report
 Second chapter describes the Banking Sector of Bangladesh.
 Third chapter describes about the history of bank and its banking
activities.
 Fourth Chapter describes about General Banking.
 Fifth Chapter describes about the Foreign Exchange. It includes the
description about the Import, Export and Remittance.
 Sixth chapter describes about the market analysis of inter bank
Dollar, Euro, Pound, Yen rate.
 Seventh chapter describes about reason to chose, compare the
SOWT of the bank.
 Eighth Chapter also describes about the conclusion and the
recommendation about the bank Performance.
 Ninth chapter describes about Abbreviation use in Foreign Exchange
Section.
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2.1. Banking Sector in Bangladesh

In 1971, Bangladesh, was East Pakistan, emerged as an independent country. In
immediately nationalized the entire banks expanding 3 Foreign Banks. Six
nationalize Banks were thus formed. In 1983 a new policy was implemented
allowing private sector participation in the industrialization. As a part of this
process, two national commercial banks were against denationalization and a
number of private commercial banks were allowed to operate. Among these
Pubali Bank and Uttara bank were the first to be decentralized.
Particulars Number of Banks

Nationalized commercial Bank 04
Privatized commercial Bank 30
Specialize Bank 04
Foreign Bank 12
Co- Operative Bank 01
Grameen Bank 01
Total = 52
Table # Schedule Banks in Bangladesh.
2% 2% 8%
1
23%
2
3
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5
8%
57% 6
Banks play a very important role in international trade. Now-a-days, no country

can thrive without international trade. Moreover, banks provide some other non-
trading service, like factory, issuing guaranty etc. when are very much
supportive to modern business.
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3.1. An over View of Pubali Bank

3.1.1 Historical Background
The bank was incorporated in the year 1959, under the name and style of eastern
Mercantile Bank Limited under company act 1913. After liberation of the
country in 1971, the bank was nationalized as per policy of the government of
the People’s Republic of Bangladesh under the Bangladesh Bank order 1972,
(Po no: 26 of 1972) and rename as Pubali Bank. Subsequently, the bank was
decentralized in 1983 and was again incorporate under the name of Pubali Bank
Ltd. in that year. The government of the People’s Republic of Bangladesh
transferred the entire undertaking of Pubali Bank to Pubali Bank Ltd. while took
over the same as a going concern.
3.1.2 Economical Backgrounds
In 1983 PBL started their new journey with the deposit of 645.14 crore taka and
they sold 16 lac share in the market.
3.1.3 Vision
To stand out as a pioneer banking institution in Bangladesh and contribute
significantly to the national economy. By assuring customer satisfaction for its
customers and through proper training of its most selected group of employees
its mission. Also through constant innovation of its product line and establishing
constant networking with prospective corporate clients it plans to accomplish its
mission.
3.1.4 Bank’s Mission
• High quality financial services with the help of latest technology.
• Fast & accurate customer service.
• Balanced growth strategy.
• High standard business ethics.
• Steady return on shareholders' equity.
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• Innovative banking at a competitive price.
• Deep commitment to the society and the growth of national economy.
• Attract and retain quality human resource
3.1.5 Principal objectives

Pubali Bank Ltd. main objective is to maximize profit through customer
satisfaction. Pubali Bank Limited has been ensuring maximum profit by
providing best and improved customer service along with other corporate
objectives mentioned below.
o Profit maximization
o To provide standard financial services.
o To provide excellent customer services to its clients.
o Ensuring high return on investment and services with different service
product.mainly done for the use of promote, disciplinary action and to
control human resources. Performance feedback is almost absent in PBL.
No systematic culture has yet been developed for performance feedback.
3.1.6 Branch Network

PBL is the largest private sector’s commercial bank in Bangladesh. The bank
within stipulation lay down by the Bank Company Act 1991 and directives as
received from Bangladesh bank from time to time provide all types of
commercial banking services. It has 351 branches All over the country and also
enlisted the Dhaka and Chittagong stock exchange as publicly quoted company
for its general class of share.
Bank’s Name Region/Zone Number of Branches

Dhaka 71
Narayangonj 17
Chittagong 54
Sylhet 42
Moulvibazar 29
Comilla 24
Noakhali 16
Pubali Bank Ltd. Mymensingh 24
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Rajshahi 23
Bangladesh. 102
Rangpur 17
Barisal 25
Khulna 22
Total Branches 364
3.1.7- Pubali Bank at a Glance

As at 31st December (in million Taka)
Year
Particulars 2006 2007 2008
Authorized Capital 5000.00 5000.00 5000.00
Paid-up Capital 1200.00 2100.00 2940.00
Reserve funds and other reserves 3327.50 3832.09 4606.82
Deposits 48675.93 57996.82 73016.51
Advance 40386.65 50549.17 61788.15
Investment 4982.10 5556.58 8375.59
Import Business 37316.50 48345.41 58009.10
Export Business 17701.80 19907.50 24795.66
Bridge Finance 7.14 6.89 6.89
Total Income 5494.49 7087.65 9009.25
Total Expenditure 3684.43 4145.66 5563.39
Pre-tax Profit 1810.06 2941.97 3445.86
Net Profit 845.53 1353.51 1515.23
Total Assets 58401.14 71560.66 89884.70
Fixed Assets 1369.07 1367.23 1383.36
Number of Employees 5141 5270 5321
Number of Shareholder 11697 19009 24153
Number of Branches 356 361 371
Earnings per ordinary share 94.92 64.45 51.54
Source of Data # (Annual report 2006 to 2008 )

Central Account Department
3.1.8 Share Capital

The authorized capital and paid up capital of the bank stood at tk. 5000 million
and tk. 1200 million respectively in 2008. Out of 24153 shareholders,
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Bangladesh Government held 72 Shares of tk 7,200.00 while the remaining

shares of TK. 2939.99 million were held by various institutions and individuals.
3.1.9 Statutory reserve Fund and other Reserve

At the close of 2008, the statutory Reserve and other reserves of the Bank stood
at taka 4606.82 million, out of which Statutory Reserve was taka 2418.83
million, other reserve was tk. 2187.99 million. Total reserve stood tk. 4606.82
million at the end of 2008
3.1.10Deposits of Bank
The Deposit trend was positive in 2008. At the end of 2007, Total Deposit was
Taka 57996.82 million that came to Taka 73016.51 million at the end of 2008
showing 25.90% increase. Out of the Total Deposit, Time Deposit and Demand
Deposit were Taka 22635.92 million and Taka 50380.59 million i.e 31.00% and
respectively.
(a) Foreign Exchange Business

3.1.12 Inward Foreign Remittance
Non resident Bangladeshis sent foreign exchange equivalent to Taka 28196.00
million through the Bank during 2008 whereas the Taka 240990.00 million in
2007. The increase shows a growth of 17.04% which is a proof of confidence on
the Bank from the NRBs.
3.1.13 Import Business

During the year the Bank handled import business worth of Taka 58009.10
million. During the previous year, the amount was Taka 48345.41 million. The
amount of import business handled by the Bank increased by Taka 9663.69
million during the year, which was 20.00% higher than the previous year.
3.1.14 Export business.
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The Bank handled export business worth Taka 24795.65 million during the year
as against Taka 19907.50 million in the previous year registering an increase of
Taka 4888.15 million @ 24.55% over the previous year.
3.1.15 Investment
Total investment of the Bank was Taka 8375.59 million during 2008.In a
comparison to previous year total investment was increase by Taka 2819.01
million @ 50.73% growth. The Bank mainly invested in Government Bonds,
Treasury Bills, Approve Debentures, Shares and Debentures of private
institutions.
33%
0
2005 2003
1
2
3
4
2004
3.1.16 Advance and Loan

The total advances of the Bank during 2008 at taka 61788.15 million showing an
increase of taka 11238.98 million @ 22.23% growth. In the line with national
economic development, the Bank made advances mainly as commercial loan,
import and Export business, Term Loan to large and medium scale industries,
House Building Loan, Working Capital Loan Consumers Credit and Syndication
Loan etc
3.1.17 Profit Position of Bank

Total Operating income & total Operating expenditure of the Bank during 2008
were Taka 6189.08 million before making provision for bad and doubtful debts
and income tax. During the year the Bank made a provision of Tk 305.00 million
against loans and advances, diminution in value of investments, exposure of off
Balance Sheet items of taka 1625.63 million against Corporate Income Tax and
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deferred Tax. As such, net profit of the Bank stood Taka 1551.23 million which
the Board of Directors proposes to appropriate in the following manner.
Net Profit Tk 1551.23 million

Transferred to Statutory Reserve Tk 628.17 million
Transferred to General Reserve Tk 887.06 million
3.1.18 Bank expansion and mobilization

The Bank expanded its operation through further opening of 10 new branches at
the following places during the 2008.
1. Kuril Bishwa Road Branch, Dhaka
2. Ati Bazar Branch, Dhaka
3. Halishahar Branch, Chittagong
4. Chakaria Branch, Cox’ Bazar
5. Gachhbari Bazar Branch, Sylhet
6. Tengra Bazar Branch, Moulavibazar
7. Daudkandi Branch, Comilla
8. Chauddagram Branch, Comilla
9. Dagon Bhuiyan Branch, Feni
10. Raipur Branch, Laxmipur
As such the total number of branches of the Bank stood 371 all over the country.
Moreover 18 branches were shifted to the new premise in more suitable places
and large number of branches were refurnished and modernized.
3.1.19 Manpower and training

The Human Resources Division is very much concerned about the training of its
members of management. Every year it provides a schedule for development and
training purposes. The division the personnel function of PBL from recruitment
to selection and also from employees’ welfare to individual’s relations, hence the
department has to play a very important role.
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3.1.20 Training and Development
PBL attach importance to provide institutional training to their human resources.

It has its own training institution. At the top there is a national level
training institute and PBL also provide training at Bangladesh Institute
of Bank Management (BIBM) to cater to the training needs of the
higher level bank personnel.
3.1.21 Performance Appraisal and Feedback
The PBL follows closed appraisal system and appraisal in mainly done for the
use of promote, disciplinary action and to control human resources.
Performance feedback is almost absent in PBL. No systematic culture
has yet been developed for performance feedback.
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4.1 General Banking

It is most important side of the bank. Bank is nothing but a middleman between
lenders (surplus unit) and borrowers (deficit unit). To provide loan, a bank needs
a huge amount of money from the depositors. General banking is the side where
banks offer different alternatives to the clients to deposit and remit their money.
To encourage the clients, bank offers different options in front of their clients.
Most of these options are very much similar between the banks, but the customer
services and facilities may not be the same. Every Branch of Every Bank has to
maintain the General Banking department. It takes care of lot of important
banking activities mainly collecting the deposit from customers. General
banking department is mostly expected to maximize the number of customers. It
is the introductory department of the Bank to its customers. Pubali Bank Limited
has all the required sections of General Banking.
I worked here from December 20, 2005 to March 20, 2006. I performed as an
Senior Officer of the department as an internee. But, I have been serving in
Pubali Bank Ltd, since November 2001 so that I had the chance to learn about all
the banking activities like General Banking including Loans & Advances,
Foreign Exchange Business including Foreign Remittance etc.
At the beginning of my service in Pubali Bank Ltd, I was posted at Foreign
Exchange Branch, Dhaka where I worked 1½ years. The branch is equipped with
the following sections of general banking:
• Account opening
• Clearing
• Remittance
• Others
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General
banking
Account opening Clearing Remittance Others

House
Figure: sections of General Banking Operation
4.2 Account Opening Section

The relationship between the banker and the customer begins with the opening
of an account by the customer. Initially all the accounts are opened with a
deposit money by the customer and hence these accounts are called deposit
account. Usually a person needs to open an account ton take services form it.
Without an opening an account, one can get only a few services from the bank.
So the banking begins actually by opening an account with a bank.
4.3 Formalities maintained for opening an account

4.3.1 Application on the Prescribed Form
The person willing to open a current account with the bank has to make
application in the prescribed form. This form must be properly filled up and
signed by the applicants.
4.3.2 Introduction to the Applicant

The applicant also required to furnish in the application form the names of the
referees from whom the banker may make inquires regarding the character,
integrity and respectability of the applicants. In most cases the introduction is
done by the customer of the bank or some other person knows to the bank by
signing on the application form with his/her account number (if any).
4.3.3 Specimen signature

Every customer is required to supply to his banker with one or more specimens
of his/her signature. These signatures are taken on cards, which are preserved by
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the banker, and his signature of the account holder on the cheques is compared
with the Specimen signatures.
4.3.4 Opening and operating the account

After the above formalities are over, the banker opens an account in the name of
applicant. Generally the minimum amount to be deposited initially is Tk. 1000/-
for opening a current account. Then the bank provides the customer with:
4.3.5 A pay in slip/deposit book

With a view of facilitate the receipt of credit items paid in by a customer, the
bank will provide him/her pay in slip either loose or in a book forms. The
customer has to fill up the pay in slip at the time of depositing the money with
the bank. The cashier with his/her initials and stamps will return the counter foil
to the customer on the receipt of the money.
4.3.6 Cheque Book

To facilitate withdrawals and payments to third parties by the customer, the bank
will also provide a cheque book to the customer. But it is noted that to get a
cheque book, the customer has to dully fill up the cheque requisition slip to the
banker.
Images: Cheque book
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4.3.6-Formalities maintained for closing an accounts

• The customer may inform the bank in writing of his/her intention to close the
account.
• The customer has to apply to the branch in charge for closing the account.
Then the in charge will remark on the account closing application for closing
the account.
• By drawing a cheque of the whole amount and a nil balance confirmation to
be taken from the account holder.
• Recover the unused cheque leaves and enter into the “Broken cheque book
register
• Remove the account opening form, specimen signature card and all other
papers relating to the closed account.
• Remarks of account closing at the ledger folio should be authenticated by the
manager or supervising officials
• The banker may ask the customer to close the account when the banker finds
that the account is not been operated for a long lime.
• If the account is not operated upon for 6 months then the banker will try to do
the bilateral communication with the account holder. But if the banker does
not get any response from the account holder then the account becomes
“Dormant” account.
• If the is not the operated upon for 2 years then the account becomes
“inoperative” account.
• A new register for unclaimed deposit account will be maintained called
“unclaimed deposit account.
• For withdrawal at any amount from tat account, permission from head office
or controlling office wins is required.
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Generally, there are three types of accounts in our country’s banking system.
1. Current Account or Demand Deposit (CD Account)
2. Savings Bank Account (SB Account)
3. Fixed (or Time) Deposit Receipt (FDR)
4. Other Types of Deposit
4.3.7 Current Account

Current account is purely demand deposit account because the bank is bound to
pay the amount to the account holder on demand at any time. It is running and
active account, which may be operated upon any number of times during a
working day. There is no restriction on the number and the amount of
withdrawals from a current account. The special characteristics of a current
account are as follows:
• The primary objective of current is to serve big customers such as
businessmen, joint stock companies, private limited companies, public
limited companies etc. from the risk of handling cash by themselves.
• The cost of providing current account facilities is considerable to the bank
since they undertake to make payments and collects the bills, drafts, cheques
for any number of times in a particular day. The bank therefore does not pay
any interest on current deposit while on the other hand some banks charge for
incidental charges on such account.
• For opening of a current account minimum deposit of taka 1000/= is
required. Introductory reference is also required for opening of such account.
4.3.8 Documentations
1.Proprietorship
• Up-to-date copy of trade license
• Introducer of a CD account holder
• Two copies of passport size photographs of account holder
• Seal
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• TIN
• VAT certificate
2. Partnership
• up to date copy of trade License
• Two copies of passport size photographs of account holder.
• Photocopy of partnership Deed, notarized by Notary Public
• Account agreement (MF-06) and letter of partnership (MF-07)
• Seal
• TIN & VAT certificate
3. Private Limited Company

• Certified copy of Memorandum and Articles of Association, signed and
sealed by the managing Director
• Photocopy of the certified of Incorporation
• List of directors as per return of joint stock company with signature
• Seal of each operating persons
• Particulars of Directors
• Resolution for opening account with the bank
4. Public Limited Company

• Certified copy of Memorandum and Articles of Association, signed and
sealed by the managing Director
• Photocopy of the certified of Incorporation
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• Particulars of Directors
• Certificate of commencement of business
• List of directors as per return of joint stock company with signature
5. Societies, Clubs, Associations etc

• Registration from the concerned authority
• By laws/ rules and regulations/ constitutions duly signed and sealed by
chairman
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Images: Current Account Form
6. Fixed Deposit Receipts (FDR)

These are the deposits, which are made with the bank for fixed period specified
in advance. It is purely a time deposit account. The bank doesn’t maintain cash
reserves against these deposits and therefore the bank offers higher rates of
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interest on such deposits. At present the rate of interest for fixed deposit Receipt
(FDR) in the First Security Bank Limited are as follows:
Rate of interest for fixed deposit Receipt (FDR)
Time period Interest rate(less than 1 Interest rate (more than 1

core) core)
For 1(one month) 7% 7.25%
For 3(three month) 8.25% 8.5%
For 6(six month) 8.5% 8.75%
For 1(one year) 9% 9.25%
For 2(two year) 9.5% 9.75%
Source: Bank Circular
7. Savings Bank Account

A savings account is meant for the people of the lower and middle classes who
wish to save a part of their incomes to meet their future need and intend to earn
an income from their savings. it aims to encouraging savings of non trading
persons, institutions, society and clubs etc. by depositing small amount of money
in the bank. Both the elements of time and demand deposit are present in this
account.
8. Documentation
• Two copies of passport size photographs of account holder.
• Photograph of the nominee
• Introducers reference
• Employer certificate
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Images: Savings Account Form
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9. Other Types of Deposit Accounts

There are some other types of deposit account maintained by the bank. Such as:
9.1 Short term deposit

It is also a time deposit account. The formalities for opening of this account are
to those required for current account. The only difference is that 7 days notice is
inquired for withdrawal of any sum and interest is paid.
9.2 Savings schemes

To attract depositors and encourage saving First Security Bank Limited
introduced various schemes.
9.3 Monthly Savings Scheme
(a) Objectives
• Building the habit of savings
• Attract small savers
• Saving for rainy days
• Ensure regular income flow
(b) Mode
Monthly installments of various sizes for a fixed deposit.
(c) Benefits
Lump sum returns after various terms of period
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9.4 Monthly Benefit Scheme
(a) Objectives
• Help the retired persons for investing their retirement benefits
• Create investment opportunities for non resident Bangladeshi
• Explore investment opportunities for school, college, university etc
(b) Mode
Deposit a fixed amount of money, say Tk. 50000 or it’s multiply for five years.
(c) Benefits
A fixed amount of money in every month for five years
9.5 Double deposit scheme
(a) Objectives
• Gives maximum profit
• Help in meeting specific needs like education, marriage etc
(b) Mode
Deposit a fixed amount of money, say tk. 50000 or it’s multiply for 7 years.
(c) Benefits
After seven years deposited amount will be doubled
9.6 Clearing House

Clearing house is an assembly of the locally operating scheduled banks for
exchange of cheques, drafts, pay orders and other demand instruments drawn on
each other and received from their respective customers for collection. The
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house meets at the appointed hour on all working days under the supervision of
two central bank officers or its agent as the case may be, and works within the
regulations framed therefore on the basis of prevailing banking practices. in
Bangladesh, clearing house sites at Bangladesh bank where there is no office of
the Bangladesh bank, Sonali bank acts as agent of Bangladesh bank.
There are mainly two types of banking systems Bangladesh, such as:
• internal clearing or inter branch clearing or inward clearing
• external clearing or inter banks clearing or outward clearing
(a) How it works?

The entire number banks representative daily conducts two meetings at a fixed
time. In their first meeting they handover cheque, drafts etc. passed, which has
drawn upon them. In case there are certain cheque, which could not be honored
are returned to the presenting banks with the reasons of non-payments in the
second meeting at the clearing-house.
(b) Operation Procedure

Clearing operations are completed in three stages:
• operation at branch level
• operation at internal clearing house
• operation at the clearing house in Bangladesh Bank
Bangladesh Bank clearing their house sites twice in a day. In its first meeting
Bangladesh Bank clearing-house received instruments and distributes the same
among the representatives of different banks drawn on their bank. In second
meeting different bank representatives comes with returned instruments and
distributing among the representatives.
(c) Software
Software called NIKASH supplied by Bangladesh Bank is used in clearing of the
cheques and other instruments. The in-charge of clearing section make clearing
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slip for each cheque through computer using NIKASH and finally this cheques
are send to the Bangladesh Bank Clearing –House sorting bank wise.
(d) Remittance
Sending money from one place to other places for the customer’s is another
important service of banks and this service is an important part of countries
payment system. For this service, people specially businessmen transfer funds
from one place to another very quickly. There are various types of remitting
money, such as:
(e) Pay Order (PO)

The pay order is used for making a remittance to the local creditor. Pay Order
gives the payee the right to claim payment from the issuing bank. it can be en-
cashed from issuing bank only. Unlike cheque, there is no possibility of
dishonoring pay order because before issuing pay order bank takes out the
money of the pay –order in advance. Pay Order cannot be endorsed or crossed
and so it is not negotiable instrument.
(f) Demand Draft (DD)

Demand Draft is an order of issuing bank on another branch of the same bank to
pay specified sum of money to the payee on demand that is the named person or
order of the demand. It is generally issued when customer wants to remit money
in any place, which is out side of the clearing-house area of issuing branch.
Payee can be purchaser himself or another mentioned in the DD. it is a
negotiable instrument and it can be crossed or not.
(g) Telegraphic or Telephonic Transfer (TT)

This Method transfers money to one place to another place by telegraphic
message. The sender branch will request another branch to pay required money
to the required payee on demand. Generally for such kind of transfer payee
should have account with the paying bank. Otherwise it is very difficult for the
paying bank to recognize the exact payee.
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When sending money is urgent then the bank uses telephone for remittance. This
service is only provided for valued customers, who is very reliable and with
which banks have long standing relationship.
(h) Mail Transfer Advice (MTA)

Where the remitter desires the banker to remit the funds to the payee instead of
purchasing a draft himself the banker does it through a mail transfer advice. The
payee must have an account with the paying office as the amount remitted in
such a manner is meant for credit to the payee’s account and not for cash
payment. It is the least used technique for transferring fund. Where there is no
telex machine or telephone line then this method is used.
9.7 Other Parts of General Banking
(a) Crossing
Crossing cheque is written across the face of the cheque within two parallel
lines. This practice becomes common even outside of clearing house, as an
element of safety.
Normally two types of cheque used in the bank. Such as:
• Open cheque: A cheque, which capable of being paid over the counter in
cash is known as open cheque.
• Crossed cheque: A cheque, which can only be paid to the banker for
crediting the proceeds to the amount of its payee.
(b) Purpose of crossing

• To avoid possible loss that may occur by open cheques getting into the hands
of wrong parties
• Crossing is a direction to the paying bank to pay the money generally to a
bank or a particular bank, so that.
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• It can be easily traced out for whose use the money was received.
(c) Forms of crossing

• General crossing
• not negotiable
• and company and co
• not transferable
• Special crossing
(d) Endorsement
An endorsement is the mode of negotiating, a negotiable instrument. According
to the section 15 of the Negotiation Instruments Act, 1881, an endorsement is
“when the maker or holder of a negotiable instrument sign the same, otherwise
then as such maker, for the purpose of negotiation, on the back of face thereof or
on a slip of paper annexed thereto he is said to endorse the same and is called the
endorser”
(e) Dispatch
Dispatch includes all correspondence, letter, statements and returns and
telegrams. This dispatch is also known as Mail. Dispatch is primarily divided
into two categories:
Inward: It means what are receives from the outside.
Outward: It means what are sent to the outside.
This dispatch also divided into (a) ordinary. (b) Registered and (c) Local.
Every correspondence should have an office copy and one additional copy is
also retained in the Master file of the office.
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9.8 Loans & Advances

In any international trade the buyers and sellers are of different countries. None
of them know each other nor about their business integrity and creditworthiness.
Various regulations prevailing in their respective countries about foreign trade
are also unknown to them. Thus, the buyer wants to be assured of goods and the
seller to be assured of payment. In such a situation commercial Banks assure
these things simultaneously by opening letter of credit guaranteeing payment to
seller and goods to buyers. By opening letter of credit on behalf of a buyer and
in favour of a seller, commercial banks undertake to made payment to a seller
subject to submission of documents drawn in strict compliance with the terms of
the letter of credit giving title to goods to the buyer.
The bank’s Loans & Advances portfolio also indicates an impressive growth.
The growth rate of PBL, June 2005 is 101.95%. PBLs advance portfolio is well
diversified and covers a wide range of business and industries. The sectors
financed include Textile and Ready-made Garments, Edible Oil, and Information
Technology, Pharmaceuticals, Construction and consumer credit amongst others.
The Bank has formulated its policy to give priority to SME (Small and Medium
Enterprise) and at the same time PBL is financing large-scale enterprises through
consortium of banks.
I worked my first banking service at Pubali Bank Ltd, Technical Road Branch,
Sylhet from February 2002 to May 2003 wherefrom I learnt the activities of
credit department and performed daily affairs of Loans & Advances. These are
the following:
(a) Mainly two types of Loans

1. Funded (Demand or consumer loan)
2. Non-Funded (L/C, Bank Guarantee, Tender etc.)
A lot of types of Funded Loans and Advances are available in The Branch of the Pubali
Bank. The types are following-
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Cash credit hypothecation

1. Over draft
2. Term loan
a) More than five years.
b) Less than five years
c) Within one year
3. Demand loan
a) Loan against DPS.
b) Loan against other security.
c) Loan against consumer credit.
d) Staff loan (PO)
4. Bank guarantee
5. Flood loan
6. PC (Packing) credit)
7. Export development fund (EDF)
8. Letter of credit( import)
9. Payments against documents (import &ex[ort
10. LATR ( loan against trust received)
11. House building
a) commercial
b) general
c) staff
12. Lease finance
9.9 Loan sanction for the client

(a) Process is following
• Application for by Client in rough format than built-in format
• Received
• Verification (Normal than physical)
• For heavy loan, Branch has to submit CIB and Proposal to Head office and
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Bangladesh Bank for permission

• Approved the loan application/Reject the proposal
• Collect security
• Give new account and permission to withdraw the loan money.
Loans & Advances is permitted on the Basis of

● Lien ● Mortgage
1. LIEN
Lien is permitted against the Following

• DPS= Deposit Pension Scheme
• FDR= Fixed Deposit Receipt
• PSP= Protirakha Sanchoy Patra
Lien (VALUE) must be the higher than the Value of Loans. 80% of Lien
Documents (Value) is permitted for the Loans & Advances. The
position of Lien Documents must be under the hand of Bank.
Here, Interest Rate of Loans: - 14%
2.MORTGAGE
● Land ● Building ● Shop
Mortgage (VALUE) must be the higher than the Value of Loans. 50% of
Mortgage Documents (Value) is permitted for the Loans & Advances. The
position of Mortgage Documents need not to be under the hand of Bank only
legal papers are necessary to be under the hand of Bank.
Here, Interest Rate of Loans: - 13%

To get Loans & Advance for the Individual client against DPS(Deposit Pension
Scheme), FDR( Fixed Deposit Receipt), MBDR(Monthly Benefit Deposit
Receipt), DBDR (Double Benefit Deposit Receipt), PSP (Protirakha Sanchoy
Patra) etc in favor 3rd party the papers following are needed-
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• Letter of Arrangement
• Letter of Authority
• Demand Promissory Note
• Balance confirmation Slip
• Letter of Lien and authority for advances of third party’s against Fixed
Deposits/ Call Deposits/ Special Deposits or Margin Deposits
• Letter of Continuity
• Memorandum of Deposit of Securities
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A: (5.1. Import)
Letter of credit may be defined as an arrangement guarantee issued by a bank at
the request & on the instructions of a customer to make payment to or to the
order of the beneficiary.
Or,
Authorized another bank to effect such payment or to pay accept or negotiate
such bill of exchange against stipulated documents, provided that terms &
condition of the L/C are complied for documentary credit 1983 revision. From
the very beginning PBL has embarked on extensive foreign exchange business
with a view to facilitating international trade transactions of the country. The
bank has established credit amounting to Tk 26033.80 as of December 31, 2005
items of import financed by the bank included electronic equipment’s, sports
goods, rice, wheat, seeds, soybean, polyolefin, dyes, chemicals, accessories etc.
The issue of import for re-export, known as ‘enrapt’, is likely to have sufficient
focus in the new five-year import policy for 2002-07 to be announced this year.
5.1.01. Import Policy

a) Sources of finance and items permissible for import against
Cash Foreign Exchange;
Foreign Aid/Credits/ Grants/ barter and others.
b) The procedure for imports by industrial consumers, commercial imports
and actual users, including formation of groups by smaller importers.
c) Basis of licensing for the category holders of various permissible items
including repeat licensing procedure.
d) The date of opening of L/C and shipment and procedure for submission of
Letter of Credit Authorization (LCA) form covering various items of
import.
e) Conditions for entry of new comers into Import Trade.
f) Conditions for import by established importers and industrial consumers.
g) Procedure for imports under O.G.L. if any.
h) Import by TCB and other Govt. Agencies.
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i) Validity of licenses with regard to L.C opening and shipment thereof.

j) Rules relating to revalidation of license (LCA form) and extension of
L/C.
k) Change of items by the Commercial Importers.
5.1.02. Definition of some important terms used in the

Import Policy
o ‘Basis of Licensing’ means percentage, rate or formula adopted for
determining the share of an importer.
o ‘Category’ means half-yearly import entitlement of a registered
commercial importer.
o ‘Commercial Importer’ means an importer who imports goods for sale in
the same form.
o ‘Entitlement’ means half-yearly requirements of raw materials or spares
of an industrial unit assessed or recommended by the sponsoring
authority.
o ‘Industrial Consumer’ means a firm or a unit requiring materials for
manufacture of is products.
o ‘Licensing Authority’ means the authority appointed to issue licenses,
permits and registration certificates and include Chief Controller,
Controller, Deputy Controller and Assistant Controller of Imports &
Exports.
o ‘Permit’ means authorization without involving foreign exchange and
include import permit or clearance permit or export permit as the case my
be
o ‘Repeat License’ means a license issued after utilizations of earlier
license.
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5.1.03. Payment of Import

Letter of Credit is the most important instrument used for payment of imports. It
is a legal instrument, which binds all relevant parties according to terms and
conditions incorporated therein. Generally, there are 4 (four) parties involved in
an L.C. They are:
o The importer/ Buyer Opening

o Bank/Issuing Bank
o Seller / Exporter Advising
o Bank/ Negotiating Bank.
According to payment terms, there are mainly three types of L/Cs such as:
o Sight Credit
o Acceptance Credit
o Deferred Payment Credit
In addition to the above, the following special types of credits are also used for
settlement of payments:
o Revolving LC
o Back to Back LC
o Red Clause LC
o Stand by LC
o Performance LC
(b) Import Procedure System

5.1.04. Documentary Requirements for Opening L/C
Importer shall submit following documents for opening L/C #
Valid Import Registration Certificate (commercial /industrial) IRC registration

and renewal fees to be paid for the current shipping period as per following
ceiling of annual import:
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Registration / Renewal Fess Value ceiling of annual Import

Tk. 500.00 Tk. 5.00 Lac
Tk. 1,500.00 Tk. 15.00 Lac
Tk. 3,000.00 Tk. 50.00 Lac
Tk. 5,000.00 Above Tk. 50.00 Lac
The following persons/ purposes are exempted from Registration

 Govt. Departments
 Local Authorities & Statutory Bodies
 Recognized Educational Institutions
 Hospitals
 Import of Capital Machinery for own use
o Tex Identification Number Certificate
o VAT Registration Certificate
o Membership Certificate of a recognized Trade Association as per
IPO
o A declaration, in triplicate, that the importer has paid income-tax
or submitted income tax return of the preceding year.
o Pro forma Invoice or Indent duly accepted by the importer
o Insurance Cover Note with Money Receipt covering value of
goods to be imported plus 10 (Ten) percent above.
o L/C application Form duly signed by the importer
o Letter of Credit Authorization from (LCAF), commercial or
industrial as the case may be, duly signed by the importer and
incorporating New ITC number of at least 6 (six) digits under the
Harmonized System as given in the Import Trade Control
Schedule 1988.
o IMP Form duly signed by the importer.
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5.1.05 Sanctioning, Documentation & Legal Formalities

Approval of Head Office and/or Branch Manger (where L/Cs are to be opened
under his delegation is too obtained before opening L/C(s).Security
documentation is to be completed as per sanction/approval terms prior to
opening of L.C. Charge Forms such as Demand Promissory Note, Letter of
Undertaking, Letter of Debit Authority & Letter of Guarantee (where applicable)
to be obtained with due stamps as per prevailing Stamp Act rate.
5.1.06 Opening Letter of Credit

With the little understanding of L/Cs and after completing necessary formalities,
the branch may now proceed for opening the credit on behalf of their own
customers who maintain accounts with them, except government organization.
Necessary entries to be given in the L/C opening Register by allocating an L/C
number and following vouchers are to be passed for completing of opening
transactions at BC Selling rate (Spot):
(a) Creation of L/C liability:

Dr. Customers Liability on L/C Cash
Cr. Bankers Liability on L/C Cash
(Amount to be rounded off to the nearest thousand Taka)
(b) Margin/Commission & Charges:
Dr. Customers A/c: Margin + Commission + F.C.C
+ Postal / Telex + Stamp + Mise.
Cr. Sunday Deposit A/c: Margin on L/C (Cash)
Cr. Income A/c: Commission on L/C Foreign
Cr. Income A/c: Postal / Telex Recoveries
Cr. Income A/c: Miscellaneous earnings
(Handling charges, stationery charges, etc.)
Cr. Sunday Deposit A/c: F.C.C
Cr. Sunday Deposit A/c: F.C.C
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Cr. Other Assets A/c: Stamps in Hand.
5.1.07. Amendment of Letter of Credit

1) To apply by the importer mentioning the specific terms which the wants
to amend supported by beneficiary consent whenever necessary.
2) To scrutinize the papers & to confirm whether amendment is to made.
3) To recover from the importer the proportionate amount of margin in case
of increase of L/C amount.
4) To recover banks commission, charges, FCC & to pass liability voucher
for the increased amount.
5) To make entry the particulars of amendment in L/C opening register &
L/C liability & margin ledger.
6) To prepare the L/C amendment form.
7) To send cable / Telex (if dividend by the importer) & original amendment
to be followed. Disposal of the amendment is same as the disposal of L/C.
5.1.08. Shipment Validity & Expiry

All L/Cs must specify shipment validity as per terms of the P/Invoice or indent
or L/C application. However, shipment validity under any circumstances shall
not exceed 9 (nine) months from the date of issuance of LCAF or registration of
LCAF with Bangladesh Bank, except capital machinery and spare parts,
shipment of which shall be made within 17 (seventeen) months. All L/Cs must
stipulate an expiry date and a place for presentation of documents for payment/
acceptance.
Vouching Procedure
Dr. Customer’s A/c
Cr. Income A/c: Commission on L/C (confirmed)
5.1.09. Stipulation of Reimbursement terms and issuance

of Reimbursement Authorization:
The branch shall stipulate reimbursement term in the L/Cs mentioning name of
the Reimbursing Bank and Nostro Account Number (preferably in the country of
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the currency denominated in the L/Cs so as to avoid possible loss due to

conversion of differential currencies). The branch shall issue and send
Reimbursement Authorization to the Reimbursing Bank immediately after
opening of the L/Cs.
5.1.10 Amendments of Letter of Credit

The Branch may allow amendments to the L/Cs only upon requests of the L/C
applicants that do not violate foreign exchange regulations and import control
regulations. Necessary charges and/or margin (where L/C value in increased by
subsequent amendments) are also to be realized/recovered from the customer
before amending the L/Cs.
Vouching Procedure:
Dr. Party Account (for margin and/or commission + Postage/Tele
+ F.C.C)
Cr. C/D A/c: Margin on L/C (Cash) (if the L/C value is increased)
Cr. Income A/c: Commission on L/C Foreign
Cr. Income A/c: Postal/Telex Recoveries
Cr. Sundry Deposit A/c: F.C.C
We authorize you to effect following reimbursement by debiting out A/c.
No.............. with you.
L/C Number:
Date:
Currency & amount:
Claiming Bank Reference (if any):
Tolerance:
Charges:
This reimbursement authorization is issued. (subject to URR 525)
Authorized Signature Authorized Signature
Contra liability if the L/C value is increased
Dr. Customer’s liability on L.C cash (for increased amount)
Cr. Banker’s liability on L/C cash
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5.1.11 Cancellation of Letter of Credit

An Irrecoverable L/C can not cancel without the agreement of the beneficiary
and the confirming bank, if any. The branch, at the request of the importer, may
approach the L/C advising bank for cancellation of the L/C and such cancellation
will only be effective upon consent of the beneficiary advised to the branch
through the L/C advising bank. However, the branch may cancel the L.C without
the consent to the beneficiary, advising bank and confirming bank, if any, if the
L/C expires and the branch receives no shipping documents within 15 days of
expiry of the L/C. The branch should send a message to the concerned bank
advising such cancellation and closure of L/C file due to expiry of the same. The
branch will then cancel the Reimbursement Authorization which has been
provided to the Reimbursing bank while opening the L/C. The branch will
reverse L/C contra liabilities, refund margin and recover charges from the L/C
applicant as per schedule of charges.
5.2. Import Demand for Payments System
5.2.01. Scrutiny/ Examination of Documents

Upon receipt of the documents the branch shall examine the documents with the L/Cs
and determine whether to take up or refuse the documents and to inform the negotiating
bank from which it received the documents within seven banking days following the
day of receipt of the documents. If the documents appear on their face not to be in
compliance with the terms and conditions of the credit, branch must reuse the
documents by sending Notice to that effect by telecommunication or by other
expeditions means to the negotiating bank without delay but not later than the close of
the seventh banking day following the day of receipt of the documents. Such Notice
must state all discrepancies in respect of which the bank refuses the documents and
must also state whether it is holding the documents at the disposal of or is returning
them to the presenter. The branch may then approach the L/C applicant for a waiver of
the discrepancy (i.e.).
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5.2.02. Scrutiny and Examination of import document

It is the responsibility of A/D branch to make proper scrutiny and examination of
import documents to ensure that.
o Full set of document as stipulated in the credit had been received.
o The document has been drawn strictly as per L/C terms.
o The document is in order not discrepant.
Scrutiny and examination of import documents is very vital and important. FEB
keeps a record of their checking on the negotiating bank's bill forwarding
schedule with a rubber stamp notation "Documents checked and found correct"
duly authenticated by the respective officer.
Checking of import documents
Import documents are checked thoroughly and some specific points receive
crucial attention that delineated below:
• The Letter of Transmittal
a) It must be addressed to L/C issuing bank
b) It has ac current date.
c) It relates to current Documentary number credit of the bank.
d) The documents enumerated are attached.
e) The value of documents and the value mentioned in the cover letter are
same etc.
 The Documentary Credit
a) It is the correct referenced Documentary Credit
b) It is still valid that nit not expired or cancelled.
c) Available balance in tit is sufficient to cover value of drawing etc.
• Bill of Exchange
a) The draft bears the correct L/C number.
b) The name of the drawer corresponds with the name of the
beneficiary.
c) It is drawn on the correct drawer indicated in the L/C
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d) Amount in words agrees with the amount in figures.

e) The beneficiary as duly signed the draft.
f) The tenor is as required by the credit.
g) The value of draft and the value of invoice are identical.
• Commercial Invoice.
a) Beneficiary as stated in documentary credit issues it.
b) The description of gods. Value and unit price matches that stated in
c) Credit as regards to the amount and currency.
d) Value of invoice does not exceed the available balance of the credit
e) The invoice is signed as required in the credit.
f) The correct number of original copies is presented.
g) The terms of delivery match with the terms of credit.
h) In case of partial shipment, the invoice amount corresponds
Proportionally to the dispatched quantity etc.
• Marine Bill of Lading
a) The shipping company must issue it.
b) Full sets of originals issued and presented.
c) The consignee's name and address are correct as mentioned in the
credit.
d) The bill of lading bears issuing date, duly signed by the issuer and the
name of ship papers.
e) The port of departure and port of destination are correct.
f) The bill of lading bears the "on board shipped" notation.
g) It is correctly marked Freight prepaid of Freight to collect.
h) The goods are consigned as stipulated in the credit
i) The bill of Lading must be properly endorsed etc.
• Airway Bill
a) The consignee's name and address and the airport of departure and
destination are stated in the Airway bill are consistent and in
agreement with the terms of credit.
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b) The documents indicated the name of the carrier.

c) The issuer is the carrier or a named agent of the named carrier.
d) The airway bill indicates the actual flight date and flight number
e) The documents are signed by the courier.
f) The consignee's name and address and notify party's name address are
correct.
g) It is correctly marked "Freight prepaid" of "Freight collect" etc.
h) The consignor's copy is being presented.
• Certificate of Origin
a) The country of origin of the goods as stated in the certificate agrees
with the terms of the credit.
b) The certificate has been signed as required by the credit.
c) The certificate has been authenticated by the stipulated authorities.
• Packing List
a) It is unique a document and not combined with any other documents.
b) The list contains all necessary information specially concerning the
packing units.
c) The data on it is consistent with that of the other documents
After scrutiny of import document if the above mentioned points are found in
order ad drawn as per credit terms, A/D branch shall make lodgment of
documents.
• Pre-shipment inspection:
To ensure the quality of imported goods and to become sure that imported goods
are not radio active pre-shipment inspection are performed by some government
approved PSI Company. For different block different PSI Company works.
Block A # ITS-Interlake Testing Service.
Country includes China and Europe.
Block B # Inspectorate Griffith.
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Country includes India, Spelunker, Bhutan, Nepal, Myanmar,

Malaysia, Singapore, Thailand and south East Asia.
Block C # Bureau Varieties International
Country includes, Indonesia Japan, Korea, Taiwan, Indonesia,
Pakistan, Australia, and New Zealand, UAS, Meddle East, Africa and others.
PSI not required for items such items include Dyes, Capital machinery, Poultry
feed, Drug and medicine (They require manufacture and expiry date) Fruits,
Computer accessories, Surgical equipment, Food items (They require phy
posenatary certificate that is provided by chamber of commerce and industry of
exported country).
Documents sent to PSI Company
Importer sends following documents along with application to PSI Company.
L/C copy
Photocopy of insurance cover note
Copy of indent/pro-forma invoice
PSI information and other relevant papers.
5.2.03. Lodgment of Import Documents

While lodgment of the import bills under Cash L/C, A/D branch shall reverse
the liability vouchers passed at the time of opening L/Cs.
Reversal of the liability Vouchers:
Debit # Acceptance Liability under Foreign L/C
Credit # Customer Liability under L/C
Lodgment Voucher to be passed:
Debit # PAD Account (Payment against Document A/C)
Credit # Head office ID through PB General A/C
Credit # Interest Account
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Credit # Commission Account L/C Misc. Handling Comm. A/C
Ruling rate of exchange BC selling rate prevailing o the date of lodgment of

document to be applied by A/D branch. A/D Branches shall charge interest form
the date of negotiation of Documents up to the date of lodgment. Counting of
interest is done from the date of the forwarding schedule of the documents to the
date of lodgment. All particulars of the L/C shall be recorded in the PAD
Register duly initiated by the authorized officials.IBCA is to be sent to Head
office, ID incarnating L/C number, value of documents in FC, conversion rate
applied, equ8valent taka amount, name of reimbursing bank, date of debit to
Head office A/C. a copy of the forwarding schedule of negotiating bank to be
sent along with the IBCA.
Transfer of Margin to PAD account

After passing the above lodgment voucher, L/C margin is also to be transferred
to the PAD Account. The following vouchers are to be passed
Debit # Other Deposit-Margin Deposit L/C (Foreign)
Credit # PAD Account
5.2.04. Lodgment with Copy Documents and Creation of

PAD
Many customers enjoy L/C limit and post import finance facilities by way of
LIM and LATR limits. After receipt of copy documents and to avoid demurrage
in the port, such customer approaches the A/D branch to endorse the copy
documents since. Original documents are not being received, the A/D branch
may not be aware of the total value of documents. In such situation, to meet the
requirement of the customer and for endorsing copy documents A/D branch
follows the following procedure: The customer is to submit a written request to
the bank along with the copy of transport documents and invoice for
endorsement. The customer must confirm in writing that the documents have
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been accepted by him and even after receipt of original documents the same are
also treated as accepted by him.
The customer has to issue undertaking to the effect that after receipt of original
documents if it is detected that there exists any shortfall in the document value,
such shortfall will be recovered from him by debit to his account.
For regular customer, if the sanctioned term of the L/C is to retire the document
on first presentation by the customer, A/D branch shall recover full invoice value
of documents plus estimated bank charges form the customer. After having an
approval from Head office, ID for endorsing copy documents A/D branch
follows some procedure and creates PAD.
5.2.05. Retirement of Import Documents

A/D branch shall issue and intimation letter to the customer to retire the
documents on payment of bank's dues in full. Receiving bank's dues the branch
shall pass the following entry:
a) For application of up to date interest
Debit # PAD Account
Credit # Interest Account
b) Retirement Voucher
Debit # Importer's Current A/C
Credit # PAD A/C along with up to date interest
The documents will be delivered to the import of his authorized representative
with due endorsement on the back of the bill of Exchange.
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5.2.06. Clearance of Goods by the Bank
Subject to prior arrangements, the bank clears the goods from the port and stores
the goods in Bank's go down. Bank clears the goods by the bank's
approved C&F agent and through C&F cell of the bank. The branch
must issue a very clear instruction as to the mode of transport for
sending goods by road or road or mode through the nominated C&F
agent for storage. After clearance of the goods, C&F agent shall arrange
delivery of the goods to the branch authorized representative and branch
stores the goods in the bank's go down as per sanction terms.
5.2.07. Disposal of IMP Forms & Matching Customs Bill

of Entry
All applications for payment for imports into Bangladesh should be made on
IMP forms. The IMP forms must be submitted in two folds by the importer or
his duly authorized agent. In all cases of remittances for imports into
Bangladesh, the importer must submit within 4 months from the date of
remittance the relevant exchange control copy of the custom bill of entry of
invoice certified by the custom authorities (in case of import by post). The
branch will obtain invoice, in duplicate, both of which will be certified by them
as usual. After recording in the IMP from the particulars of the remittance
affected, the original copy of the IMP form along with a copy of the certified
invoice shall be forwarded to Bangladesh Bank along with the usual monthly
returns. The duplicate copy of IMP form will be retained by the branch.
Subsequently when the exchange control copy of the bill of entry customs
certified invoice is submitted by the importer, the particulars therein should be
matched sand checked with those in the IMP forms and invoice filed earlier, to
see if the merchandise for which remittance was made has been duly received in
Bangladesh. If no material discrepancy in detected, the case should be
considered closed with the duplicate IMP form, invoice and custom bill of entry/
custom certified invoice filed together for eventual inspection by Bangladesh
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Inspection Team. Cases with material discrepancy between the particulars of

merchandise for which remittance was made and the merchandise actually
received as evidence by the exchange control copy of bill of entry/ customs
certified invoice, and cases of non-submission of bill of entry/customs certified
invoice within 4 months of remittance should be reported to the area office of
Bangladesh Bank quarterly by 15th day of the month following the quarters
ended March, June, September and December.
Certified that the amount of freight payable in Bangladesh Taka _______ as

indicated on the Bill of Lading No. ________ dated ________ in respect of
_______ imported by Messrs. ________ from ________ per s.s. _________ has
been duly endorsed on the Exchange Control Copy of the relative L.C. Authorization
Form No. ______ dated ________ under out stamp and signature.
Date............................
Signature and Stamp of the
Authorized Dealer
5.2.08. Creation of LIM

LIM stand for Loan against imported merchandise and LIM account is created
on the same day of storage of the goods in the bank's go down. The branch's
authorized representative shall take delivery of goods from the representative of
the C&F Agent/transport Company strictly as per invoice for storage of goods in
the bank's go down. Goods received from C&F Agent must be goods condition
and in original packing without any tampering in the box/ packing is found
tampered or broken, the delivery of goods be held up and the C&F
agent/importer and the transport company be contacted at once and joint survey
with the representative of the importer, bank official and transport/ C&F agent
shall be made before storage of the good. After storage of the goods in the bank's
go down the branch shall create LIM in the name of customer.
At the time of creation of LIM the branch shall pass the following vouchers.
Debit # LIM A/C
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Credit # PAD A/C (with up to date interest)

After creating LIM A/C, the branch shall inform the importer to take delivery of
the imported goods from the Bank against full payment. The LIM Accounts shall
be properly maintained by the branches and to be balanced at the end of each
month with the figure of General Ledge of the branch.
Necessary document for LIM

Following documents are sent to CDA branch for LIM
• Bill or exchange
• Invoice Bill of lading
• Packing list
• Customer purpose copy of import license number
• Letter of credit Copy
• Insurance cover note
• Indent
• Certificate of origin
• Others
5.2.09. Creation of LATR
LATR stands for Loan against Trust Receipt in such arrangements. The import
documents are delivered to importer by signing a Trust Receipt.
Bank does not clear the goods from the port and does not take
control of goods. Importer cleat the goods from the port and takes
possession of goods under this control. On the stipulated date,
importer pays the bank's dues and LATR is liquidated for creation
of LATR the branch is to pass following entry.
Debit # LATR Account
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Credit # PAD Account with up to date interest
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B: (5. 1. EXPORT)
Literally, by the export we mean out earring of anything from one country to
another. Export as sending of visible things outside the country for sale. Export
trade plays a vital role in the development process of an economy with the
export earning we met out import. The total export business handled by PBL
amounted to the TK 15721.10 million as of December 31, 2005. Export items
handled by the bank in clouded jute goods, readymade garments, handicraft etc.
Export of frozen food or mainly shrimps has developed in recent years as an
important export activity in Bangladesh. The sector obviously has a promise. It
was the third largest foreign currency earner for the country in 2001-2002 fiscal
years but earning in that year was below that of the previous year. This pointed
to the urgency of tanking steps to ensure steady higher earning from the sector.
The country’s highest foreign currency earner, the ready-made garments (RMG)
industry, faced a similar situation of enforcing labor standards by getting rids of
child workers. Timely steps in this direction saved the RMG sector from serious
adverse experiences. In the same manner, producers and exporters in the frozen
food, Leather industry sector need to understand of importers and work sincerely
to fulfill them as a way of ensuring the viability of their business. A rich new
vein of export earnings for the country can open up at a time when there exists
much eagerness for understandable reasons to boost the foreign currency
reserve. This is possible through the development of an export-oriented silk
industry. Bangladesh has been on the world map as a silk producing country for
a long time. It’s production of natural silk industry in order part of the Indian
subcontinent. But India is among the top five countries of the world in respect of
silk production whereas Bangladesh is a very tiny player in the world silk
industry, not with standing the fact that it possesses hospitable natural conditions
for the establishment of a large silk industry with a strong export- oriented
component.
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5. 1.1 Legal Requirements

Although payment aspect of exports in Bangladesh Bank’s concern, physical
aspect is controlled by the Export policy order announced by the Ministry of
commerce. Bangladesh Bank has set out elaborate procedure and laid down
detailed rules and regulations concerning exports and export payments. All
exports, to which the requirement of declaration applies, must be declared on the
Exp. form. The branch should before certifying any export form, consider and
take notices of the following:
o The intended exporter shall have valid export Registration Certificate.
o Payment for goods exported from Bangladesh should be received though

the branch in freely convertible currency or in Taka form a non-resident
Taka account of a branch or a Correspondent abroad.
o Commission, brokerage and other trade charges are admissible only up to

a maximum of 5% of the value of goods. The charges beyond 5% may be
admissible subject to prior approval of Bangladesh Bank.
o In order to avoid any loss of foreign exchange to the country, the branch
should see that
Arrangements have been made for realization of export proceeds within

prescribed period of 4 (four) months.
Arrangements has been made for receipt of little to goods like Bill of lading,
Airway Bill, etc. by the branch on shipment of goods.
The Exp form is signed either by the exporter or one holding valid legal power
of attorney form exporter and the terms of the power of attorney are such that
both the exporter and the attorney be held responsible jointly and severally for
realization of export proceeds.
Bonfires of the buyers/ consignees abroad and their credentials.
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The branch and its officials certifying the export forms as well as exporter render
themselves liable to punitive action under the FER Act for delay in repatriation
or non-realization of export proceeds.
In respect of export of goods by land route or by sea, the Bill of lading, Railway
Receipt and documents of title to cargo should be drawn only to the order of
Mercantile Bank limited.
In respect of export of goods by air, the Airway Bill and other document of title
to cargo should be drawn to the order of a bank in the country of import
nominated by the branch.
5.1.2. Securitization, Negotiation & Collection of Export

Bill
Upon receipt of the documents the branch shall examine the documents with the
LC. If the documents appear on their face not be in compliance with the terms
and conditions of the credit, the beneficiary may be advised to rectify the
discrepancies, it possible. If the discrepancies are not possible to be rectified, the
following ways are open for disposal of the documents.
5.1.3. Handling of Export Bills

All export from Bangladesh must be declared on the EXP from prescribed by
Bangladesh Bank. In this regard exporters shall submit a requesting letter
whereby they confirm that all arrangement for shipment of gods have been made
under a valid L/C. the EXP forms are required to submit to customs authorities
after being certified by an A/D branch. The A/D branch will ensure that.
o Each set of EXP form is duly filled in and signed by the exporter and duly
certified by the branch.
o Full particulars of EXP forms have been recorded in the prescribed
register and assigned umber for each set of EXP form.
o A/D branch shall maintain EXP register in the prescribed form given by
Bangladesh Bank.
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After the form is certified by the A/D branch it should be submitted to the
customer authorities by the exporter along with the shipping bill at the time of
shipment. The customer authorities, after filling the portion relation to them and
affixing their seal and signature therein, will return the duplicate, triplicate and
quadruplicate copies to the exporters. The original copy will be forwarded by the
customer authorities to Bangladesh Bank. The exporter must submit all the
remaining copies of the EXP form along with the invoice etc to the A/D branch
through whim payment in respect of goods exported is to be received. All
shipping documents covering goods exported from Bangladesh and declared on
EXP form must be passed through A/D branch within 14 days from the date of
shipment. Duplicate of EXP from is sent to Bangladesh Bank by A/D branch
within 14 days from the date of shipment of the goods covered by the form.
On receipt of the EXP and other documents A/D compare the signatures
appearing on the Bills of Lading with the specimen signatures of the duly
authorized officers of steamer companies on record to ensure genuineness do
documents. A/D satisfies himself that the declaration made on the form is correct
and the method of finance stated hereon is a permitted one. Here it is important
that in no case the invoice value should be less than the value declared for
customs purposes.
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5.1.3 (a). Time Period for Repatriation of Export Proceeds
The period prescribed by Bangladesh Bank within which exporters must receive
full foreign exchange proceeds of export is 4 months. A quarterly
statement showing the particulars of overdue export bills is to be
submitted to Head office in prescribed form given by the Bangladesh
Bank.
5. 1.3.(b). Scrutiny and Checking of Export Documents
Export bills and shipping documents should be scrutinized and checked

properly. Particular attention should be given on the under noted
checklist while examining the documents.
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1. Export Letter of Credit
It has not yet expired.
It is the correct referenced export L/C
The available balance in the export L/C is sufficient to cover the value of
drawing.
2. Bill of exchange
The bill of exchange is properly stamped of requisite value.
The draft bears the correct L/C umber.
The drawn on the drawer corresponds with the name of the beneficiary.
It is drawn on the correct drawer indicated in the L/C
Amount in words agrees with the amount in figures.
The beneficiary has duly signed the draft.
The tenor is as required by the credit.
The value of draft and the value of invoice are identical.
3. Commercial invoice
Beneficiary as stated in documentary credit it.
The description of goods value and unit price marches that stated in credit as
regards the amount and currency.
Value of invoice does not exceed the available blanch of the credit All the copies
of invoices are sensed and certified as required in the credit.
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The correct number of original copies is presented
The terms of delivery match with the terms of credit.
In case of partial shipment the invoice amount corresponds proportionally to the

dispatched quantity etc.
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4. Marine bill of Loading
The shipping company or its authorized agent must issue it.
Full sets of originals issued and presented.
The consignee's name and address are correct as mentioned in the credit.
The bill of lading bears issuing date, duly signed by the issuer and the name of
ship appears.
The port of departure and port of destination are correct.
The bill of lading bears the on board shipped' notation.
It is correctly marked Freight prepaid of Freight to collect.
The goods are cosigned as stipulated in the credit.
The bill of Lading must be properly endorsed etc.
5. Weight Certificate
The document is headed weight certificate.
The total weight must agree with that stated in other documents.
The various partial weights added up to the total weight.
6. Airway Bill
The consignee's name and address and the airports of departure and destination
are stated in the Air Way Bill are consistent and in agreement with the
terms of credit
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The documents indicate the name of the carrier.
The issuer is the carrier of a named agent of the named carrier.
The airway bill indicates the actual flight date and flight umber
The document is signed by carrier.
The consignee's name and address and notify to notifies name and address are
correct.
It is correctly marked "Freight prepaid" or "Freight collect" etc.
The consignor's copy is being presented.
7. Certificate of Origin
The country of origin of the goods as stated in the certificate agrees with the
terms of the credit.
The certificate has been singed as required by the credit.
The certificate has been authenticated by the stipulated authorities.
8. Packing List
It is unique a document and not combined with any other documents.
The list contains all necessary information specially concerning the packing
units
The data on it is consistent with that of the other document.
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9. Inspection Certificate
The document is headed inspection certificate.
The details in the certificate agree with the terms of credit.
The certificate contains full description of goods corresponding to the details

given in commercial invoice.
The certificate must be singed.
5. 1.4. Negotiation of Export Bills
A/D branch should examine and scrutinize export documents thoroughly to

ensure that the export documents have been drawn in strict conformity
with the terms and condition of export L/C. after examination of export
documents if it is found that three is no discrepancy in the documents.
A/D branch may negotiate the documents. Branch shall prepare the
forwarding schedule to be sent to L/C issuing bank properly with
specific instruction for remittance of the export proceeds. For
negotiation or export bill bank shall be pass the following entries.
Debit # F B P A/C
Credit # Customer's A/C
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OD sight export bill buying rate prevailing on the date of negotiation shall be
applied. Separate FBP umber is to be allotted for each export bill to be
sent for realization of export proceeds. All particulars of export
document are to be entered in FBP register before dispatching the
documents to L/C issuing Bank. The forwarding schedule must be
prepared properly with specific instruction how remitting bank shall
remit proceeds and in case of their default what they should do. Branch
must retain at least photocopy of the original bill of lading duly
endorsed and also a photocopy of invoice in file as record. The duplicate
copy of EXP form shall have to be submitted to Bangladesh Bank within
14 days from the date of shipment by A/D branch.
5. 1.4 (a). Realization of Export Proceeds
After realization of export proceeds the A/D branch shall pass the following
entries
Debit # Head office ID
Credit # F.B.P A/C
Bank shall apply the same rate of exchange that earlier at the time of
debiting FBP A/C.
5.1.5. Opening of Back to Back L/C

The garment industry in Bangladesh is allowed to import raw materials/fabrics
and accessories free of duty under bonded warehouse arrangements. On receipt
of and export L/C a garments and specialized Textile unit under bonded
warehouse system is allowed to open Back to Back L/C for import up to
maximum 75% of net FOB value of export L/C. for computation of FOB value,
freight charges, insurance and commission involved in shipment of merchandise
under the export L/C are to be deducted. The export L/C which the Bangladesh
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exporter has received from abroad is commonly refereed to as Master Export

L/C and the second L/C issued by the bank in favor of textile mill is referred to
as back to back L/C. the export L/C are separate transactions and are
independent to each other. Since the payment of Back to Back L/C is made out
of export proceeds, the Back to Back is to be established on basis covering
usance period of not more than 180 days and most of the time 90 days. The
import documents are to be delivered to the customer against acceptance and
execution of trust receipt. The customer clears the goods from the port,
manufactures the garments and makes the export. Export documents are
submitted to the bank for negotiation and collection of proceeds. The exporter is
only entitled to receive his CM portion (export boll value minus import
obligation) and banks pay the CM portion to customer by purchasing the amount.
After realization of export proceeds the import obligation under Back to Back
L/C is being set aside for payment on maturity date out of export proceeds
Before opening of any Back to Back L/C relevant documents should be
scrutinized properly A/D branch should ensure that’s areas follows
 The export L/C issuing bank must be a reputed one
 The export L/C is a sight L/C and freely negotiable
 In case of terms of delivery FOB is preferable For C&F. freight
Certificate is to be obtained.
 Reimbursement instruction of export L/C must be very clear.
 Quantity of merchandise with price must clearly be mentioned
 Port of destination must be clearly mentioned.
 Shipment period shall not be insufficient.
 L/C must bear the clause that it is transferable.
 Beneficiary and transferor must be identical.
 Transfer must be authenticated by advising bank.
 The export L/C is to be authenticated by the advising bank in Bangladesh.
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5.1.6. Opening of Back to Back L/C on account of

Garment Industry
The following paper and documents will be required to properly examine before
opening of Back to Back L/C.
 Valid bonded warehouse license or current year. Back to Back
amount must not exceed the bonded warehouse limit.
 Quota allocation letter from EPB mentioning quota category,
number and quantity for quota items.
 Valid IRC can ERC.
 Permission issued by Ministry of Textile.
 BGMEA Membership certificates.
 Tax identification number.
 Valid trades authorize letter/C application form duly filled in and
signed by the applicant.
 Original Master Export L/C duly authenticated by the advising
bank.
 Pro-forma invoice of indent duly accepted by the applicant.
 Insurance cover note with evidence of payment and premium
 .LCAF duly filled in and signed by the applicant.
 Credit report on supplier.
 IMP form duly singed in Blank.
 Undertaking form the applicant of L/C that import documents, if
drawn strictly as per L/C terms, accepted by bank shall be treated
as accepted by the applicant also. There is need proper scrutiny of
L/C application form, pro-forma invoice and quota allocation
letter.
5. 1.7. Shipment and unsance period
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The shipment date is to be fixed on the basis of production capacity. Sufficient

gap period in between the last shipment date of Back to Back L/C and the last
date of Master Export L/C must be maintained. Usance period of Back to Back
L/C is to be counted form the date of acceptance of documents. In most of the
times it appears that gap period is insufficient. This is risky because bank deals
in documents and not in goods. The customer accepts the documents and clears
the goods from port. The bank is to convey the acceptance and maturity date to
foreign bank. The bank cannot withhold the payment on maturity date on plea
that his customer has failed to make export or export proceeds have not been
received. The bank has to make payment of import obligation on maturity date.
If the customer fails to export goods or even if the export proceeds has not been
received by the branch is it make payment of its import obligation on due of
payment by creating forced overdraft the account of customer.
5. 1.8. Payment of Back to Back L/C against realized

Export Proceeds
A/D branch is to retain or set aside the amount of import obligation out of export
proceeds to make payment of Back to Back L/C obligation on maturity date.
Therefore, A/D branch only negotiate the CM portion that is the difference
amount (value of export bill minus amount of import obligation) as admissible as
per rule and pay the proceeds to customer in Bangladesh taka.
Branch passes following voucher in this regard
Debit: FBP Account (CM Portion)
Credit: Customer's Account Prevailing OD sight export bill buying rate shall be
applied by A/D branch. The amount of import obligation is to be set aside by the
branch from the export proceeds for payment on maturity date of payment. After
realization of export precede A/D branch is to pass the following vouchers
Debit # Head office, ID
Credit # FBP A/C
(Conversion rate will be same as applied at the time of FBP)
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Credit # Margin Deposit L/C Foreign A/C

(Mid value national rate will be applied)
Credit # Customer A/C
(Prevailing OD sight export bill buying rate will be applied)
Credit # Customers FC Retention A/C
(Mid value notional rate will be applied.)
Credit # Export Commission A/C
(a) Payment of Import Obligation:
While releasing the payment of import obligation the A/D branch shall pass the
following vouchers:
Debit # Margin Deposit L/C Foreign A/C
(Mid value notional rate will be applied)
Credit # Head office, ID
An IBCA is to be sent to Head office, ID mentioning the detail particulars the

transaction.
5. 1.9. Lodgment of import bill under Back to Back L/C

A/D branch shall make proper scouting and examination of documents after
receiving of import documents under bank to bank L/C it the documents are
found in order branch shall make lodgment of the same.
Reverse of L/C liability is to be made as under
Debit # Acceptance Liability under Foreign L/C
Credit # Customer Liability under Foreign L/C
Since the L/C is being opened on usance basis 30/60/90/180 days PAD account
must not to be created. Following vouchers are to be passed by the A/D branch
for lodgment of documents under Back to Back L/C
Debit # Customer's Acceptance under L/C
Credit # Bank's Acceptance under L/C
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No fund in foreign currency shall be purchased by A/D branch under Back to

Back L/C the payment under Back to Back L/C will be made on maturity date
out of export proceeds in due course.
5. 1.10. Packing credit/Pre-shipment credit

Packing credit/Pre-shipment credit is a short term credit sanctioned to an
exporter to enable him to procure, process, manufacture, pack and ship the goods
to the buyers abroad in conformity with the terms of export letter of credit
received in favor of the exporter from 1st class foreign banks.
o Packing credit/pre-shipment credit is utilized solely for the procurement
of raw materials/goods to be shipped under the export L/C.
o Goods purchased/manufactured under this arrangement shall remain
pledged or hypothecated to the bank under direct supervision of Branch
Officials to ensure timely shipment.
Goods manufactured and purchased under this arrangement are kept separate
from all other good and stock report singed by the exporter and certified by the
approved shoppers or the approved forwarding and clearing agent or an authorized
officer of the branch is to the submitted to the Branch .Goods to be fully insured
against all risk Transit insurance to cover the good unto the port of shipment are
also to be obtained. The original letter of credit should be prominently marked
with stamp “Under Lien” and retained with the branch so that the exporters
cannot avail similar facility with any other bank against the same letter or credit.
Before allowing the credit, an undertaking to be obtained from the exporter to
deliver the shipping documents to the branch along with insurance policies and
other documents required to be presented strictly in terms of letter of credit
immediately after the consignment has been shipped. Insurance cover under
ECG (Export credit Guarantee scheme) from Sadharan Bima Corporation
covering all risk during pre-shipment/ post shipment period should obtained.
Shipment is to be made through Forwarding Agents & Shippers approved by the
bank within the validity period of the export L/C.Packing credit/pre-shipment
credit should be adjusted/liquidated by negotiation of export documents within
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the stipulated times as per terms of sanction letter. If the shipment of the gods
covered by the exported letter of credit “under lien” with Bank is not made
within the validity period of L/C, the credit allowed to the credit allowed to the
exporter to be recovered by debiting the exporter account maintained with the
Branch. If sufficient balance is not available in the account, alternative
arrangement to be made with having the goods already hypothecation/pledged
with the bank remaining the basic security and simultaneously insurance claim
should be lodged with Sadharan--Bima Corporation under ECG Schemed after
obtaining necessary permission from Head Office.
5. 1.11.Opening of L/C under Export Development Fund

Loan
Bangladesh Bank has had created Export Development fund (EDF) in 1988 for
allowing re-finance to meet the import requirements of no-tradition exporters
Devitrifying in to higher value exports and new markets. Direct and indirect
non-traditional Exporter, high domestic contents and readymade garment
exporters will be eligible to use the EDF fund.
Instead of opening usance L/C the bank has to open Back to Back L/C at sight
basis for import of raw materials and accessories against the master Export L/C,
since the L/C will be at sight basis, the reimbursement or import obligation will
be made from the Nostro A/C of L/C issuing bank. A/D branch shall make
normal reimbursement instruction for payment of L/C by debiting Head office
Nostro A/C abroad. After receipt of import documents under EDF, if the
documents are in order and strictly drawn as per L/C terms. Branch shall submit
application to ID for obtaining refinance form Bangladesh Bank. While making
such application in prescribed form, FEB submit following documents along
with application form
• Copy of bill of Exchange.
• Copy of bill of lading.
• Copy of invoice.
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• Negotiation Bank’s forwarding schedule.

Upon receipt of application form along with above documents. Head office, ID,
Shall debit the concerned branch through General A/C and shall send IBDA to
the branch mentioning FC amount, L/C number shall pass the following entry.
Debit # EDF Loan A/C
Credit # Head office, ID
An EDF Loan account is to be created in the name of the customer and the rate
of interest will be applicable as notified by Bangladesh Bank from time to time.
Re-finance facilities under EDF are allowed in foreign currency and up to
maximum period of 180 days form the date of payment under sight L/C. After
realization of export proceeds, branch shall adjust the EDF loan account with
interest out of the export proceeds. Thereafter A/D branch shall request Head
office to refund the amount drawn from Bangladesh Bank along with interest in
foreign currency. In this purpose Head office shall authorize Bangladesh Bank to
debit Head office Clearing Account with it.
The rate of interest of be charged to customers under EDF lain, is being fixed by
Bangladesh Bank on the basis of LIBOR+1% the rate of interest moves if
LIBOR moves. At the time of refund of any EDF loan to Bangladesh Bank, A/D
shall retain 3.5% in case of new exporters and 2.5 in case of old exporters. the
rate of interest prevailing on the date of negotiation will be applied for creation
for EDF loan account.
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C:5.1 (Remittance/Foreign Remittance)

5.1.1 Remittance: Remittance means transfer of Money/Fund from one place to
another place/country through Banking channel.
5.1.2 Foreign Remittance: Foreign Remittance means transfer of money in the
form of Foreign Exchange/Currency from one country to another country
through Banking Channel. In a broad sense, Foreign Remittance includes
purchase and sales of all Foreign Bills and currency on account of Import &
Export transaction/payment and other purposes.
5.1.3 Foreign Exchange: Foreign Exchange relates to the process on
mechanism by which the currency of one country is converted into the currency
to another country. The process of converting one national currency into another
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and of transferring the ownership of money from one country to another – Dr.
Paul Einzig.
5.1.4 Inward Foreign Remittance (Incoming Foreign Remittance): Private
Remittance, Indenting Commission, Recruiting Agents Commission, Export
Bills, Importers Claim, Gift, Donation, Foreign Loan, Service Charges, FC
Notes etc. (Inward Remittance by different Exchange House or Company
through the NRT account: Demand Draft, TT, Instant cash payment etc.)
5.1.5 Outward Foreign Remittance (Outgoing Foreign Remittance): Travel
Expenses (Cash FC, TC), Medical Expenses, Education Expenses,
Examination/Tuition Fees, Membership Fees, profit/dividend of Foreign
Investment, Service Charges, Insurance Premium, Hajj Travel Expense, Foreign
Loan Repayment, Consultation fees, Import Payment etc.
5.1.6 Modes of Foreign Remittance: TT (Telephonic Transfer), DD (Demand
Draft), TC (Traveller’s Cheque), International Money Order, Postal Order,
Bank’s Cheque etc.
5.1.7 Parties of Foreign Remittance: (1) Remitter, (2) Remitting Bank (3)
Receiving Bank (4) Beneficiary.
5.1.8 Inward Foreign Remittance through Exchange

Companies
Inward foreign remittance on account of Bangladeshi Expatriates living abroad

is a source of procuring foreign currency. Foreign currency primarily is
required for accommodating import payments. Subsequent to meeting
import payments, the surplus, if any, is sold out in the inter-bank
market. At present Pubali Bank have 35 windows for routing inward
foreign remittance from different countries on account of Bangladeshi
Expatriates. A summary position of inward foreign remittance since
1999 is furnished below:
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Figures in Crore:
SL Year No. of Amount of Except Increase

No. Companies Remittance KSA /
Decreas
e
1. 1999 12 182.40 182.40
2. 2000 13 223.12 223.12 40.72
3. 2001 16 475.77 330.80 107.68
4. 2002 18 1854.42 537.66 206.86
5. 2003 25 3130.20 769.70 232.04
6. 2004 28 1123.14 965.68 195.98
7. 2005 29 1424.25 1424.24 458.56
8. 2006 35 1523.02 1518.67 98.77
Exchange rate offered for the inward foreign remittance plays a very vital role
for the remitters to choose bank for routing their remittance. The
remitters generally prefer to choose the banks to route their
remittance which have offered higher exchange rate than the bank
where the beneficiaries maintain accounts for getting better value of
their money. The banks involved in the remittance process may be
grouped as seller bank and buyer bank. The buyer banks which require
buying foreign currency from the inter-bank market to meet their
import payments are in an advantageous position in offering better
exchange rate to the remitters. This helps them to minimize their
dependency on the inter-bank market for foreign currency and also to
open windows for regular source of foreign currency. There is no
certainty that the buyer bank will get the required Foreign Currency in
the inter-bank market. But for the banks which used to sell foreign
currency in the inter-bank market after meeting their import payments
are to take the inter-bank foreign currency rate in consideration in
fixing up exchange rate to the remitters. Usually, the exchange rate for
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the seller banks is lower than the exchange rate for the buyer banks.
Seller banks fix up exchange rate keeping in view the opportunities
prevailing in the inter-bank market where the buyer banks fix up the
rate keeping in view the opportunities of adjusting their foreign
currencies against their import payments. Generally, the rate for import
payments is higher than the rate prevailing in the inter-bank market.
5.1.9 Remittance position in USD:

Figures in Crore
Year Total Remittance Remittance from Remittance other than

in USD Saudi Arabia in from Saudi Arabia in
USD USD
2002 32.21 22.75 9.45
2003 53.78 40.55 13.23
2004 19.13 2.70 16.43
2005 22.39 - 22.39
2006 22.00 0.63 21.37
5.1.10 Remittance position of GBP:

GBP 3.03 lac since January 2006 to October 2006.
Month Remittance in GBP Remittance in equivalent to Taka

January 35,697.52 42,48,004.88
February 29,578.29 35,50,496.66
March 37,294.56 46,58,160.34
April 29,393.95 36,88,940.73
May 24,205.05 31,20,462.67
June 36,562.07 47,16,507.03
July 60,838.45 78,48,160.05
August 17,528.99 22,67,208.62
September 8,208.19 10,55,438.81
October 24,295.84 30,63,021.87
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Total = 303,602.91 382,16,401.65
5.1.11 Modus Operandi of Local/Foreign Remittance
5.1.11 Sending money from one place to other places for the customer is an
important service of banks and this service is an important part of
countries payment system. For this service, people specially
businessmen transfer funds from one place to another very quickly.
There are various types of remitting money, such as:
5.2 Pay Order (PO)/Telegraphic Transfer Payment Order

(TTPO)
5.2.1 Pay Order: Payment Order is used for making a remittance to the local
beneficiary. Pay Order gives the payee the right to claim payment from
the issuing bank. It can be encashed from issuing bank only. Unlike
cheque, there is no possibility of dishonoring pay order because before
issuing pay order bank takes out the money of the Pay Order in
advance. Pay Order cannot be endorsed or crossed and so it is not
negotiable instrument.
5.2.3 Telegraphic Transfer Pay Order: Telegraphic Transfer Payment Order

(TTPO) is used for making a remittance to the local beneficiary. After
receiving telephonic transfer instruction, if the instructing beneficiary
maintains his account in other bank then the payee branch issues TTPO
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favouring beneficiary bank. Beneficiary bank then collects the

proceeds of the TTPO on behalf of its beneficiary.
5.3 Demand Draft (DD)/Foreign Demand Draft
5.3.1 .Local DD: Demand Draft (DD) is an order of issuing bank on another
branch of the same bank to pay specified sum of money to the payee
on demand that is the named person or order of the demand. It is
generally issued when customer wants to remit money in any place,
which is out side of the Clearing-House area of issuing branch. Payee
can be purchaser himself or another mentioned in the DD. It is a
negotiable instrument and it can be crossed or not crossed.
5.3.2 Foreign DD: Foreign Demand Draft (FDD) is an order of issuing Foreign
Bank/Exchange Company on a branch of a bank to pay specified sum of money
to the payee on demand. It is generally issued when customer wants to remit
money in any place, which is out side of the country of issuing bank. Payee can
be purchaser himself or another mentioned in the FDD. It is a negotiable
instrument and it can be crossed or not crossed.
5.4 Telegraphic or Telephonic Transfer (TT)/Foreign

Telegraphic Transfer (FTT)
5.4.1 Telegraphic Transfer (TT): This Method transfers money from one place
to another place by telegraphic message. The sender branch will
request another branch to pay required money to the stipulated payee
on demand. Generally for such kind of transfer payee should have
account with the paying bank. Otherwise it is very difficult for the
paying bank to recognize the exact payee. When sending money is
urgent then the bank uses telephone for remittance. This service is only
provided for valued customers, who is very reliable and with which
banks have long standing relationship.
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5.4.2 Foreign Telegraphic Transfer (FTT): Foreign Telegraphic Transfer

(FTT) is an order of issuing Foreign Bank/Exchange Company on a
bank to pay specified sum of money to the payee. It is generally issued
when customer wants to remit money in any place, which is out side of
the country of issuing bank. After receiving the FTT’s order local bank
can issue TT/TTPO like its local TT operation for remitting the fund to
stipulated beneficiary.
5.4.3. Mail Transfer Advice (MTA)
When the remitter desires the banker to remit the funds to the payee instead of
purchasing a draft himself the banker does it through a mail transfer
advice. The payee must have an account with the paying office as the
amount remitted in such a manner is meant for credit to the payee’s
account and not for cash payment. It is the least used technique for
transferring fund. Where there is no telex machine or telephone line
then this method is used.
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6.1 Foreign Remittance Trade Mechanism of Pubali Bank

Pubali Bank Ltd acquires Foreign Remittance by purchasing Foreign Currency
through exchange rate and Export business. Foreign Currencies sells through
Import business and also sells in local market. Actually, Foreign Remittance
includes all the areas of Banking activities like General Banking and Foreign
Exchange Business. I would like to describe all these as follows:
6.1.2. Purchasing of Foreign Currencies:

Pubali Basnk purchasing foreign currencies i.e. US Dollar, British Pound
Sterling, and any other currencies through exchange rate. At present, Pubali
Bank has established Taka Drawing Arrangement for purchasing Foreign
Currencies with 33 Exchange Companies in different countries like UK, USA,
Canada, UAE, Oman, Qatar, KSA, Bahrain, Kuwait etc. and also some proposals
of few Exchange Companies are under process. The Bank offers a unique
exchange rate for its all the Exchange Companies and prevailing exchange is
Taka65.80/US.Dollar as on 19.09.2006. For providing better customer service,
the Bank posted few employees in different Exchange Companies. The
expatriates of our countries are sent their earnings through Pubali Bank in a
remarkable amount. Bank is giving better and prompt customer service so that
the remittance can easily transferred. Payment system of the Bank has two
modes in connection with remittance payment one of which is Foreign Demand
Drafts (FDD) and another is Foreign Telegraphic Transfer (FTT). The FDD can
pays within 3 or 4 days of its issuance from abroad wherein the FTT requires
only 2 days for same Bank’s beneficiaries. But, the other Banks’ beneficiary’s
payment should requires 2 days more for clearing time. The Speed Cash or
Western Money Transfer system is absent in Pubali Bank Ltd still now, but it is
under process to introduce such system of remittance within short time. The
payment of Foreign Remittance in same Bank is easiest. This is why for
expanding its market; the Bank offers several marketing promotions offer in
several times. A marketing promotion offer was going on in July 01, 2006 to
July 31, 2006 naming as
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61.3 Expatriate Service Month July 2006

For this promotion offer it gives extra 1% interest on deposits among all the
remitters’ account through all the exchange companies and it also declares a VIP
service will be given up to December 2006 among the top 50 remitters of the
said service month. The Bank also is providing all the General Banking facilities
in remitting their foreign currencies like Open a new account, Clearing facilities
form other banks, Fund Transfer locally, various Deposit scheme offers etc. As
the Foreign Remittance includes all the General Banking activities, I can say the
Foreign Remittance is an important product of General Banking in Pubali Bank.
6.1.4 Selling of Foreign Currencies:

Pubali Bank selling foreign currencies i.e. US Dollar, British Pound Sterling,
and any other currencies through competitive rate in local market and invests in
its Import business. In Bangladesh Import is an important business as our
country has a lot of deficiency in many sectors. Without Foreign currency
Import business is impossible. To purchase any kinds of goods/products from
abroad it is required to make Letter of Credit (L/C) which requires foreign
currency. Pubali Bank invests foreign currencies in its Import business while
making L/Cs through its 30 Authorized Dealer (A/D) Branches. The surplus
amount of foreign currencies sells in local market.
6.1.5 Selling of Foreign Currencies in local market:

The Bank maintains to offices in selling foreign currencies i.e. Front Office and
Back Office.
6.1.6 Front Office’s Activities (Dealing Room activities):

Dealer sells the surplus amount of foreign currencies in local foreign currencies
market (i.e. sells foreign currencies to other local banks/financial institutes) in a
specific competitive rate. On the other hand foreign currencies may also
purchase from other banks while deficiency in foreign currencies at the bank.
Dealer makes the deal confirmation to other bank over telephone in a specific
rate/period from Front Office then all other documentary works is done by the
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Back Office. The Dealer maintains three rates while selling and purchasing
foreign currencies i.e. Spot Rate, Forward Rate and Cross Rate in Pubali Bank.
To analyze exchange rate the Dealer uses online software named Royter, which
always shows different currencies’ up and down trend.
Spot Rate is used in buying and selling of currencies in the same day. In this
system, purchase or sells of currencies in the prevailing rate of the purchasing
date.
Forward Rate is used in buying and selling of currencies in a specific forward
day. In this system, purchase or sell of currencies in the date of contact in a fixed
rate after certain date.
Cross Rate is used in buying and selling of currencies through cross rate i.e.
dividing one currency by another currency.
6.1.7 Back Office’s Activities:

Back Office provides all the documentary support of deal confirmation. After
completion of deal by the Dealer, Back Office makes all necessary papers in
respect of deal send it to respective bank to effect payment. Back Office
maintains all the required registers for proper handling currency market.
6.1.8 Selling of Foreign Currencies in Import business:

With the little understanding of L/Cs and after completing necessary formalities,
the branch may now proceed for opening the credit on behalf of their own
customers who maintain accounts with them, except government organization.
Necessary entries to be given in the L/C opening Register by allocating an L/C
number and following vouchers are to be passed for completing of opening
transactions at BC Selling rate (Spot):In Import business no local currency can
be used. On the other hand, only foreign currency can be used in Import
business. While making L/C payment should be made by Foreign Currency i.e.
US Dollar, British Pound Sterling, etc. Pubali Bank almost can make payment
their L/Cs in favors of their customers/clients from its own sources i.e. from its
own foreign currencies’ fund, which was earned from its Foreign Remittance
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business. The Bank hardly should purchase foreign currency to make payment of
their L/Cs.
6.1.9 Impact of Foreign Remittance on Foreign Exchange

Business
As Foreign Exchange business depends on Foreign Currencies, it should not be
ignored the impact of Foreign Remittance on Foreign Exchange business.
Foreign Exchange business is a large thing on the other hand Foreign Remittance
activities is also large. A foreign Remittance activity includes all the General
Banking as well as Foreign Exchange business which I briefly discussed in
earlier pages. So, the impact of Foreign Remittance, I can say, influences on
both the General Banking and Foreign Exchange business simultaneously.
Foreign Remittance impacts on General Banking in its general customer service
level and expanding its business at rote level. On the other hand, Foreign
Remittance impacts on Foreign Exchange business in its global Foreign
Exchange business where corporate customers are engaged. Foreign Remittance
impact, however, I discussed earlier, on both the General Banking as well as
Foreign Exchange business. Thus the Foreign Remittance is acquired in the form
of Foreign Currencies and actually it is used in Foreign Exchange business, I can
say that impact of Foreign Remittance on Foreign Exchange business is
undoubted. But, impact of Foreign Remittance on General Banking business is
indirect and implicit works like all other customer services. In view of the above
fact, I can say that impact of Foreign Remittance on Foreign Exchange business
is a vast.
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7.1 Mercantile Bank Ltd

Mercantile Bank Ltd is establish them self as a second-generation bank and
promises to there customers to accelerating the better service in the banking field
rather they are failed to meet up the demand of there customer and have some
reason.
7.2 Reason to choose Mercantile Bank Ltd.

In the background of liberalization of economic policy in the Bangladesh, MBL
emerged as a new commercial bank to provide efficient in banking service with
a view to accelerating social economical development of the country and also
provide the better foreign exchange service to there clients whose come to
operate foreign trade and accelerating the foreign currency for country and
regenerating the revenue in the GDP and also industrializations.
7.3 Comparative analysis MBL with PBL

MBL is promises to there customers to accelerating the better service in the
banking field whether they could failed to meet up the demand of there customer
and have some reason.
7.3.1 Number of branches:
The number of branches of MBL is less then the PBL, because the branches of
PBL remain 351 and the MBL also remain 65, so the ratios stand 5:3.
7.3.2 Permission of Central Bank:
Central bank also provide the MBL to establish only one foreign exchange
branch at commercial area and permit 10 of there branches as AD, but the
numbers of branches of PBL are so more then they because PBL get the facilities
when they under at Central bank.
7.3.3 Inter bank relation:
Relation create the trade with this proverb in banking sector the MBL as newly
establish bank operate themselves to transecting with the local and international
banks to transferred the cash. But PBL also create a strong relation with the local
and international arena to transfer of cash.
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7.3.4 Human resources:

Recourses should be allocated properly in this scene MBL also try them self to
appoint the best and potentials candidate who to be serve the better service to
there customer, but unfortunately they have hade not any training center that
they build there employee and employers mope potential in the competitive
market rather they arrange the several banking related workshop a and
symposium.
7.3.5 Customer service and trust:
Service first with this cense they provide the service and create the trust in the
heart of there customers but as a newly establish bank they trying there level
best.
7.4 SWOT Analysis of Pubali Bank Ltd.
Strengths of PBL
Brand Value.
Product Range
Low Interest rate (@13%) then foreign banks
350 Branches all over the country
Effective human recourses
Minimum service Charge
Large number of Customers
No additional service charges impose.
Weakness of PBL
Poor Que. Management.

Less superior service quality.
Lack of Technology.
Minimum customer care.
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Minimum use of Advertising.

No use of ATM and evening Banking.
Less contribution of management with employees
Opportunity of PBL
Large number of Share and Paid up capital

Several segments in investment
Threats of PBL
Local Private Bank.

PBL Vs Dhaka Bank
PBL Vs Eastern Bank
PBL Vs IFIC Bank
PBL Vs Mercantile Bank
Foreign Banks.
PBL Vs stander Chartered Bank
PBL Vs HSBC
PBL Vs American Express
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8.1 Findings and Recommendation regarding PBL

 In today’s world we consider time as money. So it needs prompt
action in making disbursement and collection of payment. In PBL
introduction of Speed Cash/Western Money Transfer System of
Foreign Remittance may resolve this problem. I recommend
introducing Speed Cash/Western Money Transfer system at the
earliest to expedite payment of remittance.
 PBL has no Online Banking System yet so that customer service can
not be given promptly. Acquiring Foreign Remittance depends on
prompt customer service and instant payment, which requires Online
Banking system. I recommend introducing Online Banking system to
attract customer and provide better customer service.
 PBL does not maintain database of other banks’ branches for which
communication with other bank in connection with payment of
Foreign Remittance can not be made smoothly. Maintain of other
banks’ database is highly recommended.
 Problem solves section of Foreign Remittance in Pubali Bank is not so
organized like other banks. Shortage of equipment and manpower
hamper its problem solves operation. I recommend that problem
solves section should have more equipped along talented personnel.
 Customer always wants the better banking services. Few banks also
provide the ATM and Evening banking facility from any of their
branches, but Pubali Bank does not have ATM and Evening facilities
in all the branches. So if they ahead that business comprehensibly then
it would be better for there customers and bank to regenerate revenue
and increase the profit index per annum from the customers and also
minimize the risk of robbery cash and the tension of the business men.
 PBL hardly exercise sells promotion policy which will be a cause to
its survival among all other new banks as the other banks are
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tremendously exercise to improve the sells promotion. I recommend

PBL should exercise sells promotion practice.
 PBL extends credit only to running and old customers but
contemporaneous and new entrepreneurs also should encourage. In
this retard increase in efficiency and minimization of cost is crucial. I
recommend PBL should extend credit not only running and old
customers but also try to increase new customer for its improvement
and survival in future.
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8.2 Conclusion
AS A student of BBA program, the entire report of my internship should held on
the Foreign Exchange Branch, Motijeel and the work related to the foreign
exchange activities of PBL. Foreign Exchange activities is also comprehensive
and complex task rather I be enjoyed myself as the internship period to learn it
and observe how the bankers should be done their activities to share my micro
level of knowledge to exchange with their decisions making and to help there
operation to compute the work and get it as an experience. After the introduction
of financial sector reform and Banking Company Act 1991, changes in banking
sector of the country are very remarkable. Activities of different dimension,
modern system and methods of workings and better policies have been taking
place in the banks. Successful application and operations for providing efficient
services a midge’s keen competition of different banks enhance performance of
them. PBL should also cope up with globalization as it had already been
improved itself in post reform environment.
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Abbreviation use in Foreign Exchange Section
Convertibility : If a currency can be exchanged for another freely,

without any restrictions or interference from the
Government of Monetary Authority, irrespective of
the ownership or the purpose of conversion,
without requiring obtaining any prior permission
from the authority, then the currency is called
convertible.
Currency Rate : Rates of exchange quoted in terms of foreign
currency for a fixed unit of home currency (also
called indirect quotations).
Cross Rate : The rate arrived at by exchanging one foreign
currency for another foreign currency other than
the local currency.
Dealing Date : The date on which a contract for sale or purchase
of foreign currency is made is called Dealing Date.
Depreciation : When the rate of exchange of a currency falls, it is
called depreciation.
Devaluation : When the par value of a currency is refined at
lower level in terms of say, Gold or Dollar it is
called Devaluation.
Discount : If the forward exchange rate is cheaper than the
sport rate, it is at a discount. Discount means
cheaper.
ECU : European Currency Unit.
EEC : European Economic Community.
EMS : European Monetary System.
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EURO Currency : Any currency owned by a non-resident of the

country of origin of the currency.
EURO Dollar : US Dollar owned by non-resident of USA in the
form of deposit with a commercial Bank outside
USA.
Firm Currency : When the value of a currency in terms of another
remains steady or develops the tendency to rise, it
is called Firm Currency.
Floating Rate : A system under which rates of exchange of a
exchange currency fluctuate freely in accordance
with the demand for and supply of the currency.
There is no fixed par value of the currency
concerned.
Forward Exchange: Contracts under whsich rates of exchange covering
a foreign exchange transaction to be settled at some
future date are settled now.
Hard Currency : When a currency becomes scarce and more
expensive to acquire, it is called hard or strong
currency.
LIBOR : London Inter Bank offered rate of interest for Euro
Currency transactions.
LONG : Long is a currency over bought (excess of purchase
over sale).
Long Rate : Rate or interest applicable to a DA Bill (after date
or after sight usance Bills).
Offer : The rate at which the price maker is willing to lend
or sell a foreign currency.
Open Position : Long or short position in a currency at any point of
time of which the bank is exposed to the risk of
fluctuation in the exchange rate.
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Pence Rate : Rate of exchange quoted in terms of home currency

for a fixed unit of foreign currency. Also called
direct quotation.
Petro Dollar : Surplus sale proceeds of petroleum (Oil) in U.S.
Dollar kept in deposits with U.S. Banks is known a
Petro Dollar.
Pip or Point : One hundredth part of a unit of foreign currency.
Premium : Premium means darer. If the forward exchange rate
is costlier than the spot rat, it is a premium.
Prime Rate : Minimum rate of interest at which the bank lends
to his best customers in U.S.A.
Revaluation : When the par value of currency is refixed at a
higher level in terms of say Dollar it is Called
Revaluation.
SDR : Special Drawing Rights of IMF.
Short : Short is a currency over sold (excess of sale over
purchase).
Sport Rate : Ratge of exchange quoted for purchase or sale of
foreign currency which is to be delivered at he
foreign centre within a period of 2 working days
from the dealing date.
Spread : Point of difference between the dealers’s buying
and selling rate of exchange.
Swap : The simultaneous purchase of a foreign currency
spot against sale of the same currency forward or
vice-versa.
SWIFT : Society for World wide Interbank Financial
Telecommunication.
Telqual Rate : The rate of interest worked out to suit a bill which
has still some time to run before maturity.
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Usance : The period or tenor for which a bill is drawn i.e. 90

days, 60 days, etc.
Value Date : The date on which the foreign exchange Value
Compensated transaction is to be settled by Value
compensated delivery/ receipt of funds in the
foreign money here & there of the date from which
the fund is subjected to interest is called value date.
Weak Currency : The currency, whose rates are falling in relation to
other currency i.e. becoming cheaper, is called
weak currency. As the supply of this currency is
large and price is cheaper, it is also called soft
currency.
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REFERANCES
1. Annual Report 2007, Pubali Bank Ltd., 26, Dilkusha C/A, Dhaka-1000,
Bangladesh
2. www.pubalibangla.com
3. www.bangladeshBankbd.com
03. Business of Banking – Dr. R M Debnath
04. Foreign Exchange –L. R Chowdhury
05. Banking Law and Practice – P.N. Vershney
06. Prospectus of Pubali Bank Ltd.
07. Practical Banking Advances – Bedi and Hardikar
08. Uniform Customs and Practice for Documentary Credits
(UCPDC) ICC Publication 500.
10. Daily journals & Magazines.
11. BIBM Library Materials.
12. Documents & Papers provided by the PBL
13. Papers and Documents Provided by -
----- Mr. Shahin Shahria, SPO, Imp, PBL ForEx Branch.
-----Mr. Md. Maidul Islam, PO, Cr. PBL ForEx Branch.
----- Mr. Md. Arifuzaman, SO, Cr. PBL ForEx Branch.
----- Miss Lifonar Afrin, SO, GB, PBL ForEx Branch
------Mr. Ahteshamul Hoque Bhuia, Officer, GB, PBL ForEx Branch
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______End of the Report______
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_____________________________________________A Report on Pubali bank Ltd

___________________Impact of Foreign Remittance on Foreign Exchange Business

1.2 Derivation of the report

1.3 Intents of the study

1.4 Rationale of the report

1. Primary source &

I used both the above sources.

Primary sources: It includes interviews & conversation with officers &

1.6 Scope and Limitations of the Report

1.7 Structure of the study

2.1. Banking Sector in Bangladesh

Particulars Number of Banks

Table # Schedule Banks in Bangladesh.

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Banks play a very important role in international trade. Now-a-days, no country

3.1. An over View of Pubali Bank

• Fast & accurate customer service.

• Balanced growth strategy.

• High standard business ethics.

• Steady return on shareholders' equity.

• Innovative banking at a competitive price.

• Deep commitment to the society and the growth of national economy.

• Attract and retain quality human resource

3.1.5 Principal objectives

3.1.6 Branch Network

Bank’s Name Region/Zone Number of Branches

3.1.7- Pubali Bank at a Glance

Source of Data # (Annual report 2006 to 2008 )

3.1.8 Share Capital

Bangladesh Government held 72 Shares of tk 7,200.00 while the remaining

3.1.9 Statutory reserve Fund and other Reserve

(a) Foreign Exchange Business

3.1.13 Import Business

3.1.14 Export business.

3.1.16 Advance and Loan

3.1.17 Profit Position of Bank

Net Profit Tk 1551.23 million

3.1.18 Bank expansion and mobilization

3.1.19 Manpower and training

3.1.20 Training and Development

PBL attach importance to provide institutional training to their human resources.

3.1.21 Performance Appraisal and Feedback

4.1 General Banking

Account opening Clearing Remittance Others

Figure: sections of General Banking Operation

4.2 Account Opening Section

4.3 Formalities maintained for opening an account

4.3.2 Introduction to the Applicant

4.3.3 Specimen signature

4.3.4 Opening and operating the account

4.3.5 A pay in slip/deposit book

4.3.6 Cheque Book

Images: Cheque book

4.3.6-Formalities maintained for closing an accounts

4.3.7 Current Account

3. Private Limited Company

4. Public Limited Company

5. Societies, Clubs, Associations etc

Images: Current Account Form

6. Fixed Deposit Receipts (FDR)

Time period Interest rate(less than 1 Interest rate (more than 1

7. Savings Bank Account

Images: Savings Account Form